(1) Each rural municipality and municipality will have its own local accumulated fund.
(2) The fund as per sub-section (1) shall contain the following amounts:-
(a) Amount received from revenue and income raised by him,
(b) Amounts to be received from Revenue Expropriation,
(c) Grants and other funds received from the Government of Nepal,
(d) Grants and other funds received from the State Government,
(e) money received from any person, association or institution,
(f) Funds provided by the Government of Nepal for rural villages and municipalities based on national priorities from foreign aid received from foreign governments, agencies, organizations or individuals,
(G) Grants and other amounts received from other rural municipalities and municipalities (h) Proceeds from Internal Debt,
(i) Funds received from any other source.
(3) All funds to be collected in the treasury of rural municipality and municipality should be deposited in a bank account.
(4) Provisions related to the spending of funds collected in the fund under sub-section (1) shall be in accordance with local laws.
(5) When making a law in accordance with sub-section (4), it shall be made in such a way that other than the following amounts cannot be spent from the fund:-
(a) The amount according to the annual budget approved by the assembly to be spent from the accumulated fund,
(b) When the annual budget is under consideration, a maximum amount of one-third of the amount of expenditure allocated in the budget under consideration as advance for daily operations,
(c) The amount to be paid or submitted by the rural municipality or municipality according to the court decision,
(d) The amount specified by the assembly for the contingency fund under section 70,
(e) Amount of principal and interest to be paid on the loan taken by the municipality and municipality.