Lack of continuity in institutional reforms posing challenges to PFM: Khatiwada

Kathmandu, May 12: Minister for Finance Dr. Yubaraj Khatiwada has said that lack of continuity in institutional reforms and inconsistency in the methods have created challenges to public financial management (PFM) in Nepal.

“The government wants to be transparent in its expenditures and accountability in terms of fiscal transfers and management,” he said while addressing the ‘International conference on pubic-sector financial management’on Saturday.

The conference was jointly organised by the Institute of Chartered Accountants of Nepal (ICAN) and Public Expenditure and Financial Accountability (PEFA) Secretariat in association with the Confederation of Asian and Pacific Accountants (CAPA).

He called for strengthening the PFM system of the country for transparency, accountability and effectiveness in the use of public funds.

The government is committed to improving the country’s PFM system to enhance its quality and strengthening public sector accounting through the implementation of international standards, he said.

Stating that the effective implementation of the medium-term expenditure framework (MTEF) was affected by political instability, he said that the tool was a must for making the government and its functions accountable and transparent.

He pointed out the lack of reform and uniformity as key challenges in the public financial management system of the country.

“In order to make the public financial management system more effective, we have to develop and utilise information technology, a robust banking system and capable human resource,” he added.

Finance Minister Dr. Khatiwada also urged the chartered accountants to become accountable and responsible towards their profession. 

“You must be ethical, and financial discipline and transparency should be maintained in your profession,” said.

More than 250 accounting professionals, including 60 international delegates, participated in the conference that was held with the theme ‘Public sector financial management: Enhanced accountability and transparency’. It deliberated on ways to strengthen transparency, accountability and audit function in the public sector.

Prakash Jung Thapa, ICAN president, emphasised on more involvement of professionals in the government organisations for strengthening public sector financial management.

Auditor General of Nepal Tanka Mani Sharma said that effective implementation of the public financial management system would help make federalism a success in Nepal.

“The current challenge is to make the federal system successful, and the public financial management system should be effective for the successful implementation of federalism,” he added. He also urged the professional accountants to undertake their duty with the highest professional standards.

Meanwhile, ICAN on Friday hosted a directors’ meeting, governance and audit committee meeting, accounting technician task force meeting and public sector financial management committee meeting of CAPA. 

Contemporary issues of accounting profession within the Asian Pacific region were discussed in the meeting. CAPA is a regional organisation representing 32 professional accounting bodies operating in 23 jurisdictions in the Asian and Pacific region. 

Similarly, the 52nd Board Meeting of the South Asian Federation of Accountants (SAFA), an apex body of SAARC, held on Friday.

Published in The Rising Nepal daily on 13 May 2018.