Auditor General's Report 2023/24
Kathmandu, May 14
Arrears have increased
by Rs. 91.59 billion in the last Fiscal Year 2023/24 and reached Rs. 733.19
billion.
According to the Auditor
General's Report for the fiscal year 2080/81 BS
(2023/24), federal ministries and agencies have Rs. 47.74 billion in arears,
provincial bodies Rs. 4.20 billion, local bodies 25.32 billion and other
institutions Rs. 14.33 billion.
The amount of arrears was related to a total
of 5,759 institutions. It included 761 local bodies, 695 committees and other
institutions from provinces, and 3,093 from the federal agencies.
Although they are comparatively new
institutions, arrears on the part of local bodies has raised alarm.
Auditor General Toyam Raya submitted the
annual report to President Ramchandra Paudel at the Office of the President,
Sheetal Niwas Wednesday.
Of the total arrears generated last year,
32.89 per cent (Rs. 30 billion) needed to be raised from the concerned offices
and authorities while 61.27 per cent (Rs. 56 billion) of it should be
regularised while 16.5 per cent (Rs. 15.1 billion) has been misappropriated and
evidences or receipts were not submitted for 44.7 per cent (Rs. 40.94 billion).
Ministry of Finance has the highest amount of
arrears – Rs. 33 billion. However, it is 1.37 per cent of the total audited
amount. In terms of percentage, the Ministry of Industry, Commerce and Supplies
has 6.12 per cent arrears (Rs. 384 million).
Likewise, Ministry of Physical Infrastructure
and Transport has 5.57 per cent arrears although it has Rs. 6.43 billion
arrears in terms of amount.
Other agencies that have high arrears are the
Ministry of Foreign Affairs (5.16 per cent), Ministry of Land Management,
Cooperatives and Poverty Alleviation (3.75 per cent), Ministry of Communication
and Information and Technology (3.47 per cent), Ministry of Energy, Water
Resources and Irrigation (1.87 per cent) and Ministry of Health and Population
(1.83 per cent).
Ten ministries have 97.99 per cent of the
arrears while the rest have 2.01 per cent.
The Auditor General found that the government
had offered discount worth Rs. 79.87 billion in the FY 2023/24 but the Ministry
of Finance and the Inland Revenue Department did not maintain separate records
of the revenue forgone on excise duty and value-added tax.
Additionally, Rs. 4.87 billion was waived in
the imports of goods under the SAFTA (South Asian Free Trade Area) facility.
Furthermore, tax waivers were provided for
goods imported under foreign aid or loan-funded projects. Imports worth Rs.
43.56 billion received tax exemptions totalling Rs. 7.53 billion under the
terms of their project development agreements.
Meanwhile, the Auditor General said that
after it sent the preliminary audited report, arrears worth about Rs. 14.48
billion have been cleared.
Accepting the report, President Paudel
emphasised the need for office-bearers of public bodies to become more
responsible and accountable in order to uphold financial discipline and enhance
fiscal responsibility, the President's Office said in a statement.
“An increase in irregularities in government
transactions each year presents a serious challenge to good governance. I
believe that the role of the Auditor General is crucial in ensuring greater
responsibility and accountability among all officials involved in the
management of public funds,” stated President Paudel.
He noted that the persistent rise in
irregular expenditures in government spending over the years has become a
matter of serious concern.
“Given the current context, it is essential
that government spending strictly adheres to existing laws and places greater
emphasis on financial discipline,” the President added.
Published in The Rising Nepal daily on 15 May 2025.
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