The government transferred a total of Rs 290 million during the first quarter of the current fiscal year, despite legal restrictions that prohibit such budget reallocations within this period.
Almost every year, government agencies bypass regulations on budget transfers citing various reasons. In FY 2024/25 as well, Rs 2.51 billion was shifted, including grants allocated for subsidies to milk and sugarcane producers between mid-July and mid-October.
The Office of the Auditor General (OAG) has consistently flagged budget transfers as a major source of financial irregularities within the bureaucracy. The Financial Comptroller General Office (FCGO) has also instructed all three tiers of government to avoid unnecessary spending during the final week of the fiscal year.
In its 62nd annual report, the OAG reiterated the need to curb fiscal indiscipline. It called for ending first-quarter and year-end budget transfers, halting cash releases to projects not listed in the annual budget, and preventing the diversion of funds earmarked for national pride projects.
Budget transfer refers to the reallocation of funds from one program to another. This typically happens when agencies fail to spend their originally assigned budgets and later seek adjustments.
Data from the Ministry of Finance (MoF) show that Rs 7.805 billion was transferred during the first five months of the fiscal year—from mid-July to mid-December. Of this, the MoF itself transferred Rs 935.05 million from the “miscellaneous” heading, while various ministries shifted an additional Rs 6.87 billion.
This year’s transfers were justified on the grounds of responding to the September 8–9 Gen Z movement. In mid-October 2025, the government approved reallocations to repair damaged infrastructure, deliver relief, and support economic recovery following the protests.
MoF spokesperson Tanka Prasad Pandey said the transfers were made only to address new and unavoidable financial obligations.
“In some cases, certain projects received insufficient allocations due to errors, or unexpected liabilities arose, making budget transfers necessary,” he added.
