Kathmandu. The Ministry of Finance has decided not to pay the bodies that award contracts without obtaining source consent. This provision has been made by issuing the Standards 2081 for Making Public Expenditure Economical and Effective.
Section (2) of the standards states that ‘the responsibility and accountability for financial liabilities created without the consent of the Ministry of Finance shall be borne by the concerned government body.’ The standards have been tightened after most government bodies awarded contracts without obtaining source consent and created liabilities for the same and demanded payment only later.
Currently, the main reason why construction entrepreneurs say they have not received payment is because of work on projects without source consent. It is estimated that such liabilities are over 10 billion. Except in special circumstances, it has been arranged that the expenditure cannot be carried over to the next fiscal year by spending more than the budget ceiling.
The spending agency has been arranged to spend 10 percent in the first quarter. It is mentioned that a plan should be made to reduce the expenditure in the month of Ashar. The standards state that government employees will not be allowed to use the photocopy machine of the government office for personal work.
Before going on any foreign trip, a person representing the country will have to obtain the approval of the Ministry of Finance. The Ministry of Finance has made a rule that no person other than the concerned employee will be allowed to go on a foreign trip in the course of government work. It is mentioned that the Ministry of Finance will provide risk allowance only if it wishes.
The new standards have made the Ministry of Finance more powerful while reducing the powers of other government agencies.
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