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

Bank deposits growing at almost half the rate of loan expansion

Kathmandu, January 11 - Bankers seem to have largely ignored the credit crunch situation of the last fiscal, as credit expansion of banks is almost double than deposit collection in the first five months of the current fiscal.

Read more ...

SEBON directs hydel companies to disclose financial details before issuing IPO

Kathmandu, January 1 - Securities Board of Nepal (SEBON) has directed hydropower companies to publish a public notice disclosing their net worth and per share income before issuing initial public offering (IPO).

Read more ...

NRB issues foreign employment bonds

KATHMANDU, Dec 13: Nepal Rastra Bank (NRN) is issuing foreign employment saving bonds of Rs 500 million, targeting Nepalis working and residing abroad or those who have recently returned from foreign employment.

Read more ...

NRB proposes threshold for digital payments

Kathmandu, November 30 - Nepal Rastra Bank (NRB) has proposed the threshold for digital payments under card facilities, electronic wallet and mobile banking, and is seeking inputs from stakeholders before issuing a directive to the service providers.

Read more ...
Symbol % Change Last Price Turnover
FMDBL 5.4054 585.0 11,933,586.0
WMBF 5.0847 124.0 50,780.0
SKDBL 2.2388 137.0 147,409.0
AHPC 2.0000 204.0 859,262.0
LBBL 1.8519 165.0 871,194.0
Symbol % Change Last Price Turnover
UNL -100.0000 0.0 21,588,164.0
KMCDB -5.3254 1,600.0 3,529,994.0
EIC -5.2216 1,561.0 4,796,840.0
GUFL -4.8276 138.0 1,191,273.0
SIL -3.9039 960.0 829,870.0
Symbol % Change Last Price Turnover
SHPC -1.8561 423.0 29,259,598.0
UNL -100.0000 0.0 21,588,164.0
BPCL -2.1407 640.0 19,295,865.0
GBIMEP 1.7045 179.0 14,896,022.0
OHL -1.5038 655.0 13,336,935.0