Kathmandu, December 15 - The local units that are functioning as the local government will be solely responsible for the monitoring of their expenditures, says the Ministry of Finance (MoF).

Local units that are receiving grants from the central government and also collecting taxes at the local level and handling development works and other recurrent works across the country will be responsible for monitoring those activities.

Finance Secretary Shankar Prasad Adhikari informed that local units are autonomous bodies and they will have to handle and monitor their expenditures. “The constitutional provision states that there will be local legislatures and the local units will be responsible towards them in terms of budget spending,” he informed.

MoF believes that the local units will be honest regarding their expenditure and follow the prescribed rules as they will have to answer to their legislatures. Adhikari further informed that all the 753 local units will have to report about their income and expenditure to the central Treasury Single Account (TSA) system of the Financial Comptroller General Office (FCGO).

Adhikari also stated that the central government’s interference in the expenditure procedure of the local units will be against the principles of decentralisation. “If the central government continues monitoring the expenditure of local units, it will be against the spirit of federal system. So, local governments will have to report to FCGO, but the monitoring aspect is their own responsibility.”

As per Adhikari, the Office of the Auditor General — the supreme audit institution of the country — will audit the income and expenditure of the local units. “The principles of spending are already set and the local units will have to follow them,” he said.

Local units have received Rs 150 billion as equalisation and conditional grants in two instalments. The central government has to release next tranche of the grant in mid-March. The government has allocated Rs 225 billion for local units under the two aforementioned grants, which is released in three instalments.

Meanwhile, the FCGO is preparing a software that will be connected to the central government’s TSA system. The FCGO is developing the Computerised Government Accounting System and Revenue Management Information System to interlink the income and spending of local units with the central accounting system of the government.

However, Rudra Singh Tamang, spokesperson for the Ministry of Federal Affairs and Local Development, informed that it will be difficult to get real time data of revenue collection and expenditure of the local units within this fiscal.

“The tracking system has not been finalised yet, and we will have to test it before applying it. So I think real time data of revenue collection and expenditure will come only from next fiscal year,” he said.

Source: The Himalayan Times

Corporate News

Parliament body asks govt to solve problem of multiple taxation

KATHMANDU, Aug 15: Parliament’s Finance Committee on Tuesday issued directions to the government to take the lead in solving the chronic problem of multiple taxation by the three tiers of government, as well as the exorbitant hike in tax rates.

Read more ...

Trade deficit surged five-fold in last decade

Kathmandu, August 5 - The country’s trade deficit jumped five folds in the last decade as imports have been skyrocketing and exports have slowed to a crawl in the review period.

Read more ...

Commercial banks yet to reach 122 local units

KATHMANDU, July 29: According to the latest data of the Nepal Rastra Bank (NRB), commercial banks have opened their branch offices in 631 local units so far, leaving 122 local units without their coverage.

Read more ...

Currency war can end global US dollar dominance & those who own gold have power

MOSCOW, June 24: The world is facing a currency war and the only hedge against the crash of the US dollar is real gold, a precious metal analyst has told RT. With geopolitical power shifting from West to East, US dominance may be ending.

Read more ...
Symbol % Change Last Price Turnover
NEF 12.5000 9.0 18,723.0
NMBHF1 11.1111 10.0 34,721.0
BNT 8.0961 6,075.0 12,089,050.0
UNL 6.1122 23,975.0 705,250.0
CORBL 6.0000 106.0 330,150.0
Symbol % Change Last Price Turnover
LFC -9.5808 151.0 122,333.0
HDL -7.5172 1,341.0 1,905,730.0
NHPC -4.7619 80.0 723,400.0
HGI -3.9648 436.0 4,231,022.0
NGPL -3.5714 162.0 78,518.0
Symbol % Change Last Price Turnover
NIBPO -0.1748 571.0 18,992,305.0
NMB 2.7864 332.0 16,791,704.0
NABIL 2.3529 957.0 16,648,687.0
RBSPO 5.0816 10,298.0 14,372,248.0
NBL -0.3413 292.0 13,930,727.0