Chapter IV FUNDS OF FARMERS ORGANISATION

There shall be a Fund for every farmers organisation, which shall comprise of the following sources, namely:-

1. (1) grants received from the Government as a share of the water charges collected in the area of operation of the farmers organisation, at such rates as may be prescribed;
2. (2) such other funds as may be granted by the State and Central Government for the development of the area of operation;
3. (3) resources raised from any financing agency for undertaking any economic development activities in its area of operation;
4. (4) such income from the properties and assets attached to the irrigation system within its area of operation, as may be granted by the Government;
5. (5) fees collected under section 25;
6. (6) amounts received from any other source:

1. (1) The farmers organisation shall keep its Fund in a Nationalised Bank or a Co-operative Bank or any Agricultural Co-operative Society.
2. (2) The Fund shall be applied towards meeting of the expenses incurred by the managing committee of the concerned farmers organisation in the administration of this Act and for no other purpose.

1. (1) The managing committee of the farmers organisation shall maintain a sinking fund for the repayment of money borrowed and shall pay every year into the sinking fund such sum as may be sufficient for repayment, within the period fixed, of all moneys so borrowed.
2. (2) The sinking fund or any part thereof shall be applied in or towards, the discharge of the loan for which such fund was created, and until such loan is wholly discharged, it shall not be applied for any other purpose.

Every Farmers organisation shall get its accounts audited in such manner and by such auditors, as may be prescribed.

The managing committee of a farmers organisation shall prepare in such form in every financial year a budget in respect of next financial year, showing the estimated receipts and expenditure of such committee and shall place before its general body for its approval in such manner, as may be prescribed.