(1) The State Government shall, every year, make nonlapsable lump sum grants to the University namely:-
(i) A grant not less than the estimated expenditure of pay and allowances of the staff contingencies, supplies and services of the University for proper functioning of University;
(ii) A grant to meet such additional items of expenditure recurring and nonrecurring as the State Government may deem necessary for the proper functioning of the University.
(2) The State Government shall also make a non-lapsable lump sum grant to the University in respect of schemes included in the Five year Plans and transferred for implementation by the University, of an amount equal to the net outlay as shown in the annual plan after deducting the anticipated assistance from the Central Government and other agencies sponsoring such schemes.
(3) The University shall furnish statements, accounts, reports and other particulars as the State Government may require before any grant is made by the Government, and shall take such action and furnish such statements, accounts, reports and other particulars relating to the utilization of any grant, within such time and in such manner as the State Government may direct.
(4) It shall be competent for the University in furtherance of its objects to accept grants from the Government of Karnataka or any other State Government or the Central Government or statutory bodies and endowments or donations under such conditions as may be agreed upon between the University and the grantor or donor.