2In respect of the financial year 1993-94 and each subsequent financial year, each local authority shall, before such date as may be prescribed in relation to each of those years—
(a)subject to paragraph 3 below, estimate the amount of the expenditure mentioned in paragraph 1 above which they will incur in respect of that year; and
(b)subject to paragraph 4 below, determine what proportion of that expenditure is to be met from each of the sources mentioned in sub-paragraphs (a) to (c) of paragraph 1 above.