(1) Except in the year in which the Board is constituted, the President shall present to the annual meeting of the Board a report on the work of the Board during the last preceding financial year, together with a budget estimate showing in the form, prescribed by regulations, the anticipated income and expenditure of the Board during the next succeeding financial year and such report shall be forwarded to the State Government within such time as may be prescribed.

(2) The budget estimate referred to in Sub-section (1) shall be presented in such manner as would not result deficit:

Provided that the State Government may, under special circumstances, sanction a deficit estimate subject to such terms and limitation as they may deem fit to impose.