KATHMANDU: During the last fiscal year, the Ministry of Finance (MoF) accumulated the highest amount of arrears among government ministries, as revealed by the 61st annual report of the Office of the Auditor General (OAG). This ministry, responsible for maintaining financial discipline in the economy, accounted for Rs 25.47 billion out of the total arrears of Rs 46.53 billion among federal government ministries. While Rs 3.55 billion is identified as recoverable, Rs 21.92 billion requires regularization. This trend persisted from the previous fiscal year, where the MoF accounted for around 58 percent of the total arrears of federal government offices.
The OAG also raised concerns about the MoF's failure to recover revenue dues, principal amounts, and interests of loans provided to various government entities, totaling Rs 415.03 billion. Additionally, other ministries like the Ministry of Physical Infrastructure and Transport and the Ministry of Communications and Information Technology also reported significant arrears, indicating potential issues with financial transparency and corruption within these government bodies.
Arrears, defined as financial transactions carried out without proper documentation and processes, suggest the possibility of corruption within government entities. The increase in government arrears by Rs 95.60 billion in the fiscal year 2022/23 brings the total arrears in the state mechanism to Rs 669 billion. This represents a 16.28 percent increase from the previous year, with significant amounts held by federal, provincial, and local governments, highlighting broader issues with financial management across various levels of government.
