(1) Every State Board shall have its own fund for the purposes of this Act and all sums which may, from time to time, be paid to it by theCentral Government and all other receipts (by way of contributions, if any, from the State Government, fees, gifts, grants, donations benefactions or otherwise) of that Board shall be carried to the fund of the Board and all payments by the Board shall be made therefrom.
     (2) Every State Board may expend such sums as it thinks fit for performing its functions under this Act and such sums shall be treated as expenditure payable out of the fund of that Board.
     (3) Nothing in this section shall apply to any ¹ [State Pollution Control Board] constituted under section 4 of the Water(Prevention and Control of Pollution) Act, 1974 (6 of 1974), which is empowered by that Act to expend money from its fund thereunder also for performing its functions, under any law for the time being in force relating to the prevention, control or abatement of air pollution.