(1) The Government of Nepal may establish a Forest Development Fund for conservation and promotion of forests and other promotional activities to implement the objectives of this Act.
(2) The fund as per sub-section (1) shall contain the following amounts:-
(a) Amounts received by the Government of Nepal from the provincial government and local level (b) money received from any person or entity,
(c) Funds received in the form of assistance or contributions from foreign governments, international organizations, organizations or individuals,
(d) _ The amount received from the sale of forest produce of the forest area, the amount received from environmental services and the amount received for giving the forest area for other purposes.
(3) According to clause (c) of sub-section (2), prior approval of the Government of Nepal, Ministry of Finance shall be obtained.
(4) The amount of Forest Development Fund shall be deposited in any "A" category commercial bank by opening an account.
(5) The audit of the fund under sub-section (1) shall be conducted by the Auditor General.
(6) Other arrangements related to the operation of the fund under sub-section (1) shall be as prescribed.