PAC Raises Alarm Over Rs 733 Billion in Arrears, Warns of Impact on Public Trust and Governance

The Public Accounts Committee (PAC) of the House of Representatives has expressed serious concern over the growing volume of arrears, stating it reflects not just weak utilization of public funds but also erodes public trust in state institutions. The remarks were made during a national workshop on arrears held in Kathmandu on Sunday.

The 62nd annual report of the Office of the Auditor General (OAG) places the total arrears up to fiscal year 2080/81 at over Rs 733 billion—an increase of 9.34% from the previous year and amounting to nearly 12% of the GDP. PAC Chairperson Rhishikesh Pokhrel emphasized the need for immediate policy reforms, stricter enforcement of financial discipline, and coordinated institutional efforts, warning that the current situation challenges the very foundation of economic good governance.

Speaker Devraj Ghimire, Deputy Speaker Indira Rana, and Auditor General Toyam Raya also echoed the urgency of transparency, accountability, and systemic reform. Raya clarified that not all arrears stem from wrongdoing but often result from procedural delays or lack of documentation. PAC Secretary Eakram Giri noted that the Committee is working to identify the root causes of arrears and develop actionable solutions to curb them.