(1) The Government of Nepal may establish a Forest Development Fund for implementing the purposes of this Act, protecting and promoting forests and other promotional activities.
(2) The fund as per sub-section (1) shall have the following amounts:-
(a)   Funds received from Government of Nepal, State Government and local level,
(b)   money received from any person or entity,
(c) Funds received in the form of assistance or loans from foreign governments, international associations, organizations or individuals,
(d) the amount received from the sale of forest produce of the forest area and the amount received for giving the forest area for other purposes,
(e)   Money received from any other source.
(3) According to clause (c) of sub-section (1), prior approval of the Government of Nepal, Ministry of Finance shall be obtained.
(4) The amount of the Forest Development Fund shall be deposited in any "A" category commercial bank by opening an account.
(5) The audit of the Fund shall be by the Auditor General.
(6) Other arrangements related to the fund shall be as prescribed.”