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Fund (1) There shall be established a fund for the authorities so constituted or declared under Section 3 of this Act. (2) The fund so established under sub-section (1) above shall include the grants that may be made by the State Government in connection with the discharge of function so delegated with respect to a specific service or activity and any other fund that may be raised as may further be prescribed in this behalf. (3) The fund so established under sub-section (1) above shall be operated subject to the special or general directions that may be issued by the tate Government in this behalf.