Auditor General’s Report

Govt spends 406% additional budget to purchase vehicles worth Rs 5.9 billion

Published On: July 16, 2020 01:26 PM NPT By: Republica  | @RepublicaNepal

Office of the Auditor General tells govt to control unproductive expenditure

KATHMANDU, July 16: The government has been found transferring billions to purchase vehicles. According to the latest report of the Office of Auditor General (OAG) based on its audits of 5,619 government offices in the fiscal year 2018/19, the federal government spent Rs 5.86 billion for the purchase of vehicles.

The total spending on vehicles is astronomical if compared to the allocated budget. Compared to Rs 1.44 billion allocated for the purchase of vehicles, the real spending jumped by 406 percent.

After the allocated amount fell short of purchasing vehicles, the government transferred the budget from other heading, according to the 57th OAG report released on Wednesday.

The OAG has raised questions on the purchase of vehicles from the budget meant for spending on development.

In addition to the transferred budget, contingency funds meant for project contracts have also been used to purchase vehicles, the OAG report found. 

If the expenditures made by the sub-national governments are also included, the spending on vehicle purchase could further increase.  

The OAG report has recommended the government to control such unproductive expenditure.

“The practice of purchasing expensive vehicles, putting red number plates on government vehicles and buying new vehicles instead of using old vehicles after repairing them must come to an end,” the OAG recommended on its report.

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