It seems to me that they are not totally certain whether to offer you funding or not... they may be waiting for other (potentially better) applicants to respond to their offers first and decide based on that. (They have probably given them a few weeks to decide). They also seem not to have received many applications though, as they don't want to deny your application completely. ('aab-namak' is more probable to be the case here, compared to the last case I commented on!).
Another scenario could also be that some professors in the department are negotiating on who, among the applicants, they are willing to work with, and the consensus cannot be reached sooner than a few weeks (until the end of semester which is a very busy period) These are the possible explanations I can think of. I don't think there's any choice but to keep your patience & see where it ends up.
But definitely, keep in touch and follow up on their decision by email and preferably phone. (read my old comments on telephone interview and its effectiveness) Good Luck.
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