Sharing of revenue of Village Forest Reserve

The revenue earned from each Village Forest Reserve shall be shared by the State Government and the concerned Village Panchayat in the manner hereinafter provided- i. The State Government shall meet the ordinary non-recurring and recurring expenditure of any year out of the revenue received during the year from the management of the Village Forest Reserve. The balance left after meeting such expenditure shall hereinafter referred to as the net revenue of the year. ii. The State Government shall retain every year fifty percent of the net revenue of the year : Provided that if in any year, the ordinary non-recurring and recurring expenditure equals or exceeds the ordinary nonrecurring and recurring expenditure over the revenue receipts, such excess expenditure shall be added to capital expenditure for the purpose of clause (iii). iii. All capital expenditure in a year shall be borne in the first instance by the State Government which shall be entitled to recover such capital expenditure at the rate of ten percent till such time it is completely recovered. If there is any deficiency in any year in the recovery of capital expenditure as aforesaid; it shall be made out of the net revenue of succeeding year or years so that total recovery of capital expenditure shall be made without default. iv. The State Government shall transfer to the Village Panchayat every year fifty percent of the net revenue of the year less the amount the State Government is entitled to recover under clause (iii). This amount shall be utilised for the development activities of the village concerned in such manner and by such authority as may be prescribed.