Paragraph 3
In calculating the limit on central expenditure imposed by paragraph 1, expenditure deducted in accordance with the following paragraphs of Schedule 2 to these Regulations—
(a)
paragraphs 1 and 2 (expenditure to support grants and Performance Reward Grant);
(b)
paragraph 25 (nursery education) to the extent that this exceeds expenditure deducted in accordance with paragraph 26 (nursery education)of Schedule 3 to the Budget Regulations; and
(c)
paragraph 35(d) (expenditure on the schools' specific contingency)
must be disregarded.