Eleventh hour overdraft of Rs 5 billion under scanner
KATHMANDU:
The government had taken over Rs 5 billion overdraft just before fiscal year 2010/11 drew to a close, according to the central bank.
The treasury had a surplus of Rs 14.30 billion in the first 11 months, according to central bank data, but the government in the last one month (June 15-July 15) of the last fiscal not only spent all the surplus amount but also took Rs 5 billion overdraft from the central bank, the government’s financial manager.
NRB governor Yubraj Khatiwada said the government had taken the overdraft but could not explain the surprising rise in government expenditure at the end of the fiscal year.
According to law, the government can take overdraft not exceeding total revenue mobilisation’s five per cent of the previous fiscal year. The government could have taken overdraft up to Rs 8 billion. “However, it has to be transparent,” said a source at the Ministry of Finance. “The government must justify its expenditure.”
The surprising rise in the government expenditures, that too when the fiscal year was about to end, has given ample ground to cast doubt on government motive.
“In recent times, the finance ministry has been found involved in financial scams, so the overdraft issue also should be investigated throughly,” said Prof Bishwhamber Pyakurel, who is a member of the central bank board. “High ranking bureaucrats should be held responsible.” NRB recently had transferred Rs 1.84 billion to revenue headings as per the directives from the finance ministry. The ministry corrected its mistake only after the House panel directed it to do so.
According to the source, the government has not started any new project that needed such a massive investment of a whopping Rs 20 billion.
Source: THT
The government had taken over Rs 5 billion overdraft just before fiscal year 2010/11 drew to a close, according to the central bank.
The treasury had a surplus of Rs 14.30 billion in the first 11 months, according to central bank data, but the government in the last one month (June 15-July 15) of the last fiscal not only spent all the surplus amount but also took Rs 5 billion overdraft from the central bank, the government’s financial manager.
NRB governor Yubraj Khatiwada said the government had taken the overdraft but could not explain the surprising rise in government expenditure at the end of the fiscal year.
According to law, the government can take overdraft not exceeding total revenue mobilisation’s five per cent of the previous fiscal year. The government could have taken overdraft up to Rs 8 billion. “However, it has to be transparent,” said a source at the Ministry of Finance. “The government must justify its expenditure.”
The surprising rise in the government expenditures, that too when the fiscal year was about to end, has given ample ground to cast doubt on government motive.
“In recent times, the finance ministry has been found involved in financial scams, so the overdraft issue also should be investigated throughly,” said Prof Bishwhamber Pyakurel, who is a member of the central bank board. “High ranking bureaucrats should be held responsible.” NRB recently had transferred Rs 1.84 billion to revenue headings as per the directives from the finance ministry. The ministry corrected its mistake only after the House panel directed it to do so.
According to the source, the government has not started any new project that needed such a massive investment of a whopping Rs 20 billion.
Source: THT
