Government’s arrears have reached Rs 733.19 billion, reflecting a significant increase of Rs 91.59 billion in the fiscal year 2023/24. According to the 62nd annual report of the Office of the Auditor General (OAG), this marks a 1.54 percent rise from the previous fiscal year’s total of Rs 641.60 billion. The rise is primarily attributed to growing financial irregularities across the federal, provincial, and local levels of government, as well as in agencies responsible for delivering public services.
The OAG audited a total of 5,769 institutions during the review period, covering financial transactions worth Rs 9.462 trillion. The reported arrears account for 0.968 percent of the total audited amount. Any financial transaction made without proper documentation or procedural compliance is categorized as an arrear. A high arrear volume typically suggests increased risks of corruption and mismanagement in government operations.
The report categorizes arrears into three types: those that must be recovered (including misappropriated funds and uncollected amounts), those that need to be regularized (due to insufficient documentation or unauthorized expenditures), and advances (amounts taken in advance by civil servants or for mobilization without timely settlement).
At the federal level, irregularities worth Rs 47.74 billion were found across 3,093 offices that managed transactions totaling Rs 3.161 trillion. In the provinces, the OAG audited 1,165 offices handling Rs 308.56 billion, of which Rs 4.20 billion was marked under irregularities. Local governments showed discrepancies of Rs 25.3 billion out of Rs 1.118 trillion audited. In addition, Rs 14.33 billion in irregularities were found in 695 working committees and institutions managing Rs 522.13 billion in transactions.
Foreign financial dealings also showed lapses. The government has yet to be reimbursed for Rs 6.25 billion in grants from donor countries, and over Rs 63.70 billion remains to be recovered under foreign loans. Furthermore, Rs 8.71 billion in foreign loan and grant transactions are still unassessed.
Among the ministries, the Ministry of Finance was responsible for the largest share of irregularities, with arrears totaling Rs 33.71 billion. This amount represents more than 70 percent of the arrears recorded for all ministries. The Ministry of Physical Infrastructure and Transport ranked second, with arrears amounting to Rs 6.43 billion.
The findings suggest that despite ongoing discussions around financial discipline and reform, serious gaps remain in public financial management. The rising arrears indicate a persistent lack of accountability and transparency, calling for urgent structural and procedural improvements in how government funds are handled.
