Arrears exceeds Rs. 500 billion

 MoPIT tops other ministries in unsettled accounts 

Kathmandu, Apr. 12:

The size of government arears has surged by more than 26 per cent in the last fiscal year 2016/17. 

According to the 55^th Report of the Auditor General 2017 published on Thursday, the arears amount has reached Rs. 500.08 billion, including the remaining foreign grant and loan reimbursement and revenue due, from Rs. 396.25 billion. 

Auditor General Tanka Mani Sharma handed over the report to President Bidya Devi Bhandari on the same day. 

The arrears of government offices is Rs. 213.67 billion, local bodies Rs. 14.25 billion, District Coordination Committees and other organisations Rs. 62.61 billion. Similarly, Rs. 20.58 billion and 22.38 billion of foreign grant and loan reimbursement respectively is remaining. 

The Ministry of Physical Infrastructure and Transport has the highest share in arrears with 22.43 per cent unsettled accounts while the Ministry of Finance, Federal Affairs and Local development, and Education are following it with 17.05 per cent, 11.99 per cent and 11.38 per cent share respectively. 

Ministry of Defence, Water Supply and Urban Development also have high numbers of arrears. 

The Nepal Trust, Civil Aviation Authority of Nepal, National Housing Company, Janak Educational Material Centre, Citizen Investment Trust, Nepal Railway Company and Cultural Corporation of Nepal have not conducted audit of their financial dealings in the last fiscal year while the National Insurance Company Limited has not conducted audit for the last five years. 

Other organisations that have not conducted audit are Nepal Tourism Board, Water Supply Corporation, Food Corporation, Drug Company, Udayapur Cement, Gorkhapatra Corporation, Pashupati Area Development Trust, Tribhuvan Univerrsity and Herbs Production and Processing Company.

Total arrears till FY 2016/17 (Rs. in billion)

Details	FY 2016/17	FY 2015/16
Government office arrears	213.67	167.49
Local level arrears	14.25	0
District Coordination Committee and other organisations arrears	62.61	54.40
Audit due	3.38	5.31
Revenue due	161.16	132.18
Remaining foreign grant reimbursement	20.58	22.51
Remaining foreign loan reimbursement	22.38	14.34
Capital/interest of guaranteed loan	2.05	0.2
Total	500.08	396.25

Source: Report of the Auditor General, 2018

The report has revealed that Nepal Oil Corporation (NOC) misappropriated Rs. 610 million while purchasing land for the petroleum storage. 

Casino companies did not pay the renewal fees Rs. 297 million, telecom companies did not pay the additional frequency and VSAT charges Rs. 105.8 million and Department of Electricity Development has failed to collect Rs. 559 million revenues and taxes from 62 hydroelectricity projects. 

The report has pointed out that about 16.42 kg extra gold was used unnecessary in the Bauddhanath Stupa reconstruction, Baglung Court that has a 3-storey building procured an elevator for 7-storey building, former judges of the Supreme Court had been provided with vehicles worth Rs. 449 million against the rule and Nepal Rastra Bank paid up to 201 per cent allowance to its staff and spent total Rs. 1.34 billion in allowances. 

Published in The Rising Nepal daily on 13 April 2018.