(1) The Government of Nepal shall appropriate grant amount for the purpose of basic and secondary education every year, out of its budget, to every Local Level on the basis of the number of schools and students and the results achieved by the students.
(2) Provincial Government shall appropriate a certain amount of money as grant every year to every Local Level, out of its budget, for the purpose of education up to secondary level pursuant to the provincial law.
(3) The Government of Nepal or Provincial Government shall appropriate necessary grant amount pursuant to the Federal law or Provincial law for the teaching institutes operated by the Government of Nepal and Provincial Government themselves or to which they have provided grant.
(4) The Local Level shall appropriate necessary budget, out of its annual budget, for the purpose of providing education of the basic level and secondary level.
(5) While appropriating budget pursuant to sub-section (4), it shall be made so that public schools providing education of the basic level or secondary level and every school operated by the Local Level may receive the budget.