Provided that no sum shall be expended by or on behalf of the Board unless the expenditure of the same is covered by a current budget grant sanctioned by the State Government.

REPAYMENT OF LOANS AND INTEREST BY BOARD

1. (1) All loans advanced to the Board by the Central Government or the State Government together with the interest accruing thereon at such rate as may, from time to time, be fixed by the Central Government or the State Government, as the case may be, shall be a first charge on the fund of the Board and the Board shall repay such loans with the interest thereon in such manner and in such number of instalments as may be determined by the Central Government or the State Government as the case may be, and every such repayment shall be deemed to be a part of the expenditure of the Board.
2. (2) For the purposes of any loan granted to it by the State Government, the Board shall be deemed to be a local authority within the meaning of the Local Authorities Loans Act, 1914, (IX of 1914).