(1) The government of Nepal shall allocate subsidy amount for the purpose of basic and secondary education to each local level through its budget every year based on the number of schools and students and the results obtained by the students.
(2) Every year, the provincial government shall allocate a certain amount as a subsidy to each local level through its budget for education up to the secondary level in accordance with the provincial law.
(3) The Government of Nepal or the Provincial Government shall allocate the necessary subsidy amount according to the federal law or the provincial law to the educational institutions which are operated by the Government of Nepal and the Provincial Government or have provided subsidies.
(4) The local level should allocate the necessary budget for the purpose of providing basic level and secondary level education in its annual budget.
(5) When allocating the budget according to sub-section (4), it should be done in such a way that every school that provides basic level or secondary level education and every school operated by the local level receives the budget.