(1) The amount of grant number 701 will be transferred to the provincial reserve fund as a grant to be spent by the province in accordance with the law.
(2) The amount of grant number 801 will be transferred to the local accumulated fund as a grant to be spent by the local level in accordance with the law.
(3) The Comptroller General's Office will transfer the amount of one-fourth of the financial equalization grant from the amount under sub-sections (1) and (2) to the relevant reserve fund in four installments on 2nd of Bhadra, 2nd of November, 2nd of January and 2nd of Baisakh each year.
(4) Regardless of what is written in sub-section (3), if a disaster or any unusual situation occurs in the country and the revenue cannot be collected as per the target, the installments other than the first installment as per sub-section (3) and the amount thereof shall be re-determined by the Government of Nepal based on the ratio of the revenue collected. will hand over.
(5) According to sub-section (3) the statement of the amount spent from the financial equalization grant shall be submitted by the state and local levels within the 1st of November, 1st of January and 1st of Baisakh of each financial year and the annual financial statement within the middle of July of the next financial year and from the Government of Nepal in accordance with sub-section (4) . The expenditure statement of the amount transferred should be submitted to the relevant office of the Controller of Funds and Accounts at the time determined by the Government of Nepal.
(6) The remaining amount of the financial equalization grant shall not be transferred to the reserve fund of the province or local level until the details as per sub-section (5) are received.
(7) Out of the subsidy amount as per sub-section (1) and (2), one third of the conditional subsidy amount will be transferred by the Comptroller General's Office to the reserve fund of the respective province or local level on the 2nd day of every year.
(8) The amount transferred for conditional grants at the provincial and local levels, which has been received for the plan or program of the subject area, to be spent only for the same plan or program, the period of implementation, the process of implementation, the work plan including the estimate of expenses, the details of monthly cash flow and The concerned state assembly, village assembly orEstimates of revenue and expenditure passed by the City Council must be submitted to the relevant Treasury and Accounts Controller's office by the end of July.
(9) According to the work plan as per sub-section (8), the province and local level shall submit the statement of the material progress and the amount of money spent to the relevant fund and accounting controller office within the 15th of November, 15th of Chaitra, 15th of June of each financial year and the annual financial statement within the middle of July of the next financial year. Will have to explain. (10) Based on the statement of expenses as per sub-section (9), the Comptroller General's Office shall adjust the amount of conditional grant transferred to the province or local level as per sub-section (7) and disburse the remaining amount on request.
(11) According to the procedures approved by the Government of Nepal, the Office of the Controller General of Accounts shall transfer the supplementary and special grant funds to the provinces or local levels.
(12) If the amount of conditional, supplementary and special grants is not spent within the financial year and there is a surplus, such surplus amount shall be filed in the federal reserve fund within 15 days after the end of the financial year through the relevant fund and accounting controller office.
(13) If the surplus amount is not returned as per sub-section (12), the Comptroller General's Office will deduct and adjust it from the financial equalization grant to be transferred in the next financial year.