The massive budget transfer indicates an increasing irregularities in govt system: OAG report
KATHMANDU, April 16: The government carried out a budget transfer of around Rs 200 billion in the fiscal year 2021/22, which was almost equal to the amount that the government allocated for the development projects for the year.
The 60th annual report unveiled by the Office of the Auditor General (OAG) shows that there were massive budget transfers conducted by the government offices in the given year. It reveals increasing cases of irregularities in the bureaucratic system.
In the fiscal year, the government announced an annual budget of Rs 1.632 trillion. The amount of cash transfer stood at Rs 196.41 billion, which made up around 12 percent of the total budget.
Of the total amount, the government agencies made the budget transfer of Rs 82.80 billion just in one month of mid-June and mid-July. In addition, Rs 26.99 billion alone was transferred in the final one week of the fiscal year 2021/22, shows the OAG report.
Budget transfer means moving funds from one assigned program or project to another. In many cases, government agencies seek to adjust budgetary allocations after being unable to spend the earmarked money.
Most of the time, the government hardly spends around 70 percent of the capital expenditure every year. The government agencies attempt to exaggerate their spending capacity just by making last-hour spending rampantly. The OAG has also raised questions on the massive expenditure of the government at the eleventh hour of the fiscal year.
The OAG report has pointed out the cash transfers in 10 programs that were not included in the budget heading. “It breaches the budget principle that bars the government bodies from making such cash transfers,” reads the report.
In the current fiscal year too, the government has spent only around 28 percent of the capital expenditure as of the first nine months. On the other hand, the government has already carried out the budget transfer worth over Rs 30 billion during the period.