(1) The Government of Nepal may, establish a forest development fund for the implementation of the objective of this Act, protection and promotion of the forest and performance of other promotional activities.
(2) The following amounts shall be credited to the fund referred to in sub-section (1):
(a) Amount received from the Government of Nepal, Provincial Government and Local Level,
(b) Amount received from any person or body,
(c) Amount received from a foreign government, international organization or person in the form of aid or loan,
(d) Amount obtained from the sale of forest products of the forest area, amount obtained from the environmental services and amount obtained in consideration for the provision of the forest area for other purpose.
(3) In receiving any amount pursuant to clause (c) of sub-section (2), prior approval of the Government of Nepal, Ministry of Finance shall be obtained.
(4) The amount of the forest development fund shall be credited to an account opened with any class “A” commercial bank.
(5) The fund referred to in sub-section (1) shall be audited by the Auditor General.
(6) Other provisions relating to the operation of the fund referred to in sub-section (1) shall be as prescribed.