The decision of the Government conveyed under sub-section (2) shall be final and binding on the Municipal Council or Town Council.

Exercise of powers and performance of functions subject to conditions: Save as otherwise provided in this Act, the exercise of any powers or the performance of any function conferred or imposed upon Municipal Council or Town Council, as the case may be, and its respective authority bey or under this Act, which involve an expenditure shall be subject to the following conditions, namely:-

1. (a) Such expenditure in son far as it is incurred in the year in which such power is exercised or such functions is performed shall be provided for under the budget-grants for the years, and
2. (b) If the exercise of such power or performance of such function in a year involves or likely to involve and expenditure for any period or at any time after the close of the said year, such expenditure shall not be incurred, unless provided for in the budget of the relevant year duly sanctioned by the Government.