513Expenditure in connection with the Municipal Affairs from the commencement of this Act to the adoption of the budget by a Corporation.

(1) Any expenditure incurred during the period between the commencement of this Act and the establishment of ¹[²[the Corporation]] under any of the provisions of this Act shall be borne by the Central Government and the amount of the expenditure so incurred shall on such establishment be recoverable by that Government out of the Municipal Fund.
(2) If in respect of the period between the establishment of ¹[²[the Corporation]] and the adoption of the first budget by ¹[²[the Corporation]] further expenditure from the Municipal Fund becomes necessary over and above the expenditure thereto for authorised for that year by the sanctioned budget estimates of the various bodies and local authorities specified in the Second Schedule, ¹[²[the Corporation]] shall adopt a supplementary statement showing the estimated amount of that expenditure.
(3) Every item of expenditure shown in the supplementary statement as adopted by ¹[²[the Corporation]] shall be deemed to be expenditure covered by a current budget-grant within the meaning of section102.
(4) The supplementary statement shall be prepared, presented and adopted in such manner and shall provide for such matters as may be determined by ¹[²[the Corporation]] .