(1) The State Government may, after due appropriation made by the State Legislature, bye-law in this behalf, make such grants and advances to the Board as the State Government may think fit for the purposes of its functions and its duties, and all grants and advances so made shall be on such terms and conditions as the State Government may think fit.
(2) For the purpose of giving grant to the Board, it shall be lawful for the State Government to levy a cess at such per centum of the rateable value or the capital value of the properties, as the case may be, as may be notified in the Official Gazette, which shall be collected by the Corporations and the Councils and remitted to the State Government. The State Government shall every year, pay to the Board, a grant-in-aid approximately equal to the amount collected on account of the cess levied under this section, in such manner as may be prescribed by rules.