Kahmandu, May 21: The Office of the Auditor General (OAG) has warned of weakening financial discipline and rising audit irregularities in Madhes Province, according to its eighth annual report submitted on Wednesday.
Deputy Auditor General Tara Prasad Pandey handed over the report for fiscal year 2024/25 to Madhes Province Chief Surendra Prasad Labh Karn in Janakpurdham. The report states that arrears are increasing in the province due to weak financial discipline in government spending, with Madhes recording higher irregularities than other provinces.
Pandey stressed the need to strengthen transparency, accountability and cost-effectiveness in public expenditure. He urged the provincial government and subordinate bodies to adopt corrective measures to improve financial governance and ensure more efficient spending.
The report also noted that audits could only be completed for 119 out of 136 local levels, along with three ministries, two agencies and four offices, after records were destroyed during last year’s Gen Z movement.
According to the OAG, key causes of poor financial discipline include inadequate laws, frequent budget transfers, rushed spending at the end of the fiscal year and the continued hiring of contract staff despite approved permanent positions.
Province Chief Karn said the provincial government would take the report seriously and work to reduce arrears, improve public spending effectiveness and strengthen good governance. He also called for clearer identification of institutional weaknesses and practical recommendations to minimise audit irregularities in the province. #Nepal
