According to the integrated annual report released by the Financial Comptroller General’s Office (FCGO) on October 26, 2083, total arrears stood at Rs 9.24 billion during the 2081/82 fiscal year. The newly published figures highlight ongoing vulnerabilities in the management of budget allocations, revenues, deposits, and work operation funds across federal, provincial, and local government offices.
Breakdown of Arrears and Key Contributors
A detailed analysis of the Rs 10.68 billion total reveals that:
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Arrears to be recovered stand at Rs 3.42 billion.
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Arrears to be regularized account for Rs 1.98 billion.
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Overdues make up the largest individual portion, totaling Rs 5.27 billion.
The report notes that expired advances (pesky) continue to constitute the largest share of the overall backlog, posing a severe challenge to maintaining financial transparency and prompt settlement.
Among government bodies, the Ministry of Physical Infrastructure and Transport registered the highest arrears at Rs 4.19 billion. Other heavily impacted ministries include:
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Ministry of Energy, Water Resources and Irrigation: Rs 3.23 billion
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Ministry of Land Management, Cooperatives and Poverty Alleviation: Rs 3.22 billion (Note: figures cited in original reporting)
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Ministry of Urban Development: Rs 780.3 million
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Ministry of Defense: Rs 319.6 million
During the review period, a total of 3,985 offices—comprising federal bodies, provincial offices under intergovernmental arrangements, and 753 local levels—underwent internal audits based on data entered into the Financial Management Information System (FMIS) as of October 28, 2083.
Contributing Factors and Challenges
Financial Comptroller General Baikuntha Prasad Aryal pointed out that the spike in arrears was heavily influenced by damages inflicted on public vehicles, government documents, and physical infrastructure during the recent Genji agitation. In several districts, the destruction of physical structures and financial accounts severely hampered administrative processes.
Beyond external disruptions, the FCGO concluded that routine procedural mistakes, operational oversights, and inadvertent errors by personnel also contributed to the rising volume of unaddressed arrears.
Mandate and Statutory Compliance
Under the Financial Procedures and Financial Accountability Act, 2076 BS, the FCGO and its network of 81 Fund and Comptroller Offices nationwide are legally mandated to conduct quarterly internal audits of government agencies. These audits aim to examine financial regularity, austerity, efficiency, and effectiveness.
Section 33(11) of the Act requires the FCGO to submit the integrated annual internal audit report to the Finance Minister annually by mid-November. Despite facing severe logistical challenges and infrastructural destruction from last year's agitation, Financial Comptroller General Aryal commended accountable officers, financial administration staff, and internal auditors for delivering the report ahead of the legal deadline through dedicated document submission and auditing efforts.
