Auditor general suggests widening digital payments to cut public spending arrears
Summary
Nepal's total outstanding public spending arrears have risen to Rs755.17 billion amid weak fiscal discipline and enforcement, according to the 63rd annual report of the Auditor General, which recommends expanding digital payments and reforms to improve governance and reduce financial irregularities.
Key Points
- Nepal's total outstanding arrears reached Rs755.17 billion by the fiscal year 2024–25, with Rs88.09 billion identified as new irregularities in the latest fiscal year.
- Federal government agencies accounted for the largest portion of arrears, with the Ministry of Finance alone recording Rs37.63 billion in unsettled accounts.
- The Auditor General recommended expanding digital payment systems, improving procurement practices, and enhancing transparency in public financial management to reduce irregularities.
- The report also highlighted the need for better coordination among federal, provincial, and local governments and urged reforms to establish a single-door mechanism for foreign aid and regulate development spending.
