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Auditor General Urges Government Agencies to Curb Rising Arrears and Uphold Fiscal Discipline

CEO Tab by CEO Tab
June 30, 2025
in Prime News
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OAG report paints bleak picture of country's fiscal governance

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Amid rising concerns over increasing government arrears, Auditor General Toyam Raya has called on all public institutions to assume full responsibility and adhere strictly to audit policies to maintain fiscal discipline.

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Speaking at the 67th anniversary of the Office of the Auditor General (OAG) on Sunday, Raya emphasized that constitutional bodies, ministries, departments, provincial and local governments, and public enterprises must align their work with the state’s audit calendar and policies. “All government bodies have to fulfill their tasks on time and responsibly,” he said.

Key Findings from the Latest OAG Report:

  • Total arrears rose by 1.54%, reaching Rs 733.19 billion in FY 2023/24.
  • Mismatch expenditures amounted to Rs 91.59 billion during the year.
  • The Ministry of Finance alone conducted non-transparent transactions worth Rs 33.71 billion.

Breakdown of Audit Irregularities:

  • Federal level:
    • Audited: Rs 3.161 trillion across 3,093 offices
    • Irregularities: Rs 47.74 billion
  • Provincial level:
    • Audited: Rs 308.56 billion across 1,165 offices
    • Irregularities: Rs 4.20 billion
  • Local level:
    • Audited: Rs 1.118 trillion across 753 local units
    • Irregularities: Rs 25.3 billion

Legislative Perspective:

Rishikesh Pokharel, Chairperson of the Public Account Committee (PAC), said the problem cannot be resolved by parliamentary oversight alone. “Resolution lies in institutional accountability,” he stated, urging government agencies to act more responsibly.

The Way Forward:

Participants at the event recommended:

  • Capacity building of civil servants
  • Awareness programs on financial compliance
  • Strict monitoring and follow-up on OAG guidelines

The rising arrears reflect persistent issues in financial management, transparency, and accountability within public institutions. The OAG and PAC have reiterated that curbing these discrepancies requires institutional reform, coordination across all levels of government, and strong enforcement of audit recommendations.

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