FCGO to launch online payment system
KATHMANDU, May 26: Financial Comptroller General Office (FCGO) has been making arrangement for online-based payment system as part of reforms in public finance management (PFM), which was initiated in 2009 with the support from the World Bank Group and UK government´s Department for International Development (DFID). “For the sustainability of reform works we are working to introduce online-based fund transfer system to discourage manual transaction from District Treasury Controller Offices,” said Shankar Prasad Adhikari, Financial Comptroller General Office.
FCGO has developed treasury single account (TSA) system in the districts. Through the system, the government can get real time data of public expenditure as well as revenue collection and mobilize funds accordingly.
“Before the introduction of TSA, it was difficult to get accurate information on government expenditures as there are over 3,500 government offices across the country,” said Adhikari. Speaking at a function jointly organized by the Public Expenditure and Financial Accountability (PEFA) secretariat and Society of Economic Journalists (SEJON) on Monday, Adhikari further informed that FCGO is on the road of major reform in the management of public finance and is also seeking "political ownership´ of its goals.
However, some of the government programs like natural disaster relief fund are still operated through separate bank account. “Our target is to create an integrated account of all government offices at the District Treasury Controller Office,” said Adhikary.
Moreover, Adhikari also said that the budgetary system reform is another challenge for PEFA, because lacks in decision-making capacity with regard to procurement is continuously delaying the development projects. “In the wider objective of PEFA is to improve the overall budgetary system, revenue and expenditure systems,” said Adhikari, adding “Enforcement of mid-term budgetary framework (MTBF) and aligning the budget with periodic plans is another necessary task.”
PEFA coordinator and Joint Comptroller General Dilli Ram Sharma argued that strong PFM system in the country is necessary for translating the vision and objectives of the government plans. “An effective and strong PFM system is essential to the proper functioning of the government for delivering macroeconomic stability vital for sustainable growth and efficient service delivery,” Sharma stated.
Likewise, Deputy Financial Comptroller General Babu Ram Subedi highlighted the challenges of audit system reform and local bodies expenditure management.
Source: Republica
