Kathmandu, Aug. 14
It seems that the local bodies have a long
way to go to obtain independence from their own revenue mobilisation.
The recent report of the Office of the
Auditor General (OAG) said that the local governments could only earn 7.22 per
cent (Rs. 35.62 billion) of their total income in the Fiscal Year 2020/21. The
753 local bodies in the country received Rs. 493.03 billion including the
grants from the federal government in that year.
Their major income includes Rs. 75.63 billion
from the savings of the previous year and Rs. 73.40 billion from revenue
sharing. They had estimated to receive about Rs. 203.17 billion income other
than the grants from the federal government.
According to the Auditor General, many
local bodies have not clarified the reduced amount while transferring the funds
from FY 2019/20 to 2020/21. It said that 167 local governments did not disclose
the reasons of the reduced responsibility transfer of Rs. 2.27 billion.
Likewise, their accounts show about Rs. 684
million less amount in the respective bank accounts. The national auditing body
has suggested to control the practice to approve the budget with unallocated
amount. Such amount would be distributed by the decision of the executive of
the respective local body, spent mostly in the one-time projects and
programmes, and fiscal discipline is not maintained.
The OAG audited Rs. 993.59 billion amount
spent by 744 local bodies in 2020/21. Including the due of the 55 local bodies
from the previous year, the amount increased to Rs. 1051.9 billion. Of that
amount about Rs. 41.19 billion has remained as arrears.
In that amount, Rs. 5.60 billion needs to
be recovered, Rs. 30.79 billion needs to be accounted while Rs. 4.79 billion is
the money taken in advance and deadline of which is already crossed.
Published in The Rising Nepal daily on 15 August 2021.
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