Govt’s arrears rose by a whopping Rs 119.77 billion in FY 2021/22: OAG

Published On: April 14, 2023 08:15 AM NPT By: Republica  | @RepublicaNepal

The accumulated arrears have reached Rs 587 billion in total, indicating growing financial irregularities in government offices

KATHMANDU, April 14: The government’s arrears increased by Rs 119.77 billion in 2021/22, taking the total amount of arrears to Rs 587 billion as of now.

According to the 60th annual report of the Office of the Auditor General (OAG) unveiled on Thursday, the amount represents the cumulative arrears of all three governments — federal, provincial and local. It shows that the arrears have been increasing by a huge amount every year.

Any financial transaction carried out without providing the required documents and fulfilling the processes is listed under arrears. A large amount of arrears hints at higher possibilities of corruption in the government bodies concerned.

The OAG report shows that the arrears increased by 21.45 percent last year. As of the previous year, the non-transparent amount was recorded at Rs 483.59 billion.

Of the amount, the arrears of federal government offices were Rs 56.31 billion, while those of provinces and local governments were Rs 7.20 billion and Rs 42.88 billion, respectively. Similarly, the arrears of other government offices were recorded at Rs 11.97 billion.   

The OAG has classified the arrears into three types: the ones which must be recovered, those which must be regularized, and advances. In the first category, the amount misappropriated, losses and the amount left to be recovered are included.

Likewise, the arrears to be regularized involve inadequate document and process, failing to delegate authorities and non-reimbursed amount. In advance, the amount taken in advance by civil servants and expenses for mobilization are included.  

The OAG this year carried out the assessment of financial transactions worth Rs 7.138 trillion of 6,546 government offices. The arrears proportion stood 1.68 percent of the transacted amounts.

Finance ministry tops in arrears among federal govt offices

KATHMANDU: Out of the arrears in the federal government, the Ministry of Finance (MoF) holds the largest amount of the non-transparent expenses.

According to the 60th annual report of the Office of the Auditor General (OAG), the MoF’s arrears in the fiscal year 2021/22 stood at Rs 32.46 billion. It makes around 58 percent of the total arrears of the federal government offices that stands at Rs 56.31 billion.

The Ministry of Physical Infrastructure and Transport, with a total arrear of Rs 8.79 billion stands at the second position. The Ministry of Communications and Information Technology has an arrear of Rs 2.70 billion. 


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