Kathmandu: The Public Accounts Committee of the House of Representatives has expressed concerns over the growing size of arrears, emphasizing that it not only reflects improper utilization of state funds but also erodes public trust in governmental bodies. During a national workshop on arrears organized by the Committee, it was concluded that controlling unlawful expenditures is a critical aspect of maintaining the national economy. The rising arrears have raised significant questions about the nation’s economic governance, highlighting the necessity for efficient management of public resources.
According to National News Agency Nepal, the 62nd annual report of the Auditor General has estimated arrears for the fiscal year 208-81 BS at over Rs 733 billion, marking an increase of 9.34 percent from the previous year. Committee President Rhishikesh Pokhrel remarked that the current arrears, which constitute around 12 percent of the Gross Domestic Product, are alarming. He emphasized the need for policy reforms, effective law implementation, and the use of information technology, along with coordinated efforts among relevant bodies, to tackle the issue.
Speaker Devraj Ghimire, addressing the event, underscored the importance of systematic expenditure and transparent record-keeping. He stressed the need for coordinated efforts among the three-tier representatives to ensure that the state’s financial records are well-managed and transparent. Referring to the Auditor General’s report, he expressed concern over the rising arrears, viewing it as a threat to economic good governance.
Deputy Speaker Indira Rana called for integrity, honesty, and transparency in the management of state resources, emphasizing the importance of economic discipline in record-keeping and auditing. Auditor General Toyam Raya noted that while arrears indicate a lack of financial discipline, they do not always imply unlawful expenditure. Last fiscal year, the Office of the Auditor General audited 5,700 offices and identified arrears amounting to Rs 733 billion, which included amounts to be recovered, regularized, or supported with proper documentation.
Raya clarified that it is a misconception to equate all arrears with irregularities or corruption. As per Article 294 of the Constitution, the OAG is mandated to submit its annual report to the President, who then presents it to the Federal Legislature through the Prime Minister. The report is subsequently reviewed by the Public Accounts Committee.
PAC Secretary Eakram Giri stated that the Committee is actively promoting transparency and accountability in public spending. He highlighted the Committee’s focus on identifying the root causes of arrears and recommending effective measures for their management.