KATHMANDU, March 21: The Ministry of Finance (MoF) has received overwhelming demand for transferring Rs 368 billion under non-budgetary cash transfers from various government bodies, which has raised the concern over the fiscal discipline in the government mechanism.
Speaking at a program on Monday, Finance Secretary Madhu Kumar Marasini said an increasing demand for budget transfers could adversely affect the country’s fiscal discipline. At a time when the government has been able to spend only 20 percent of Rs 378 billion allocated for the capital expenditure, the demand for non-budgetary cash transfers could lead to a rampant spending of the state’s funds, he said.
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Budget transfer means moving funds from one assigned program or project to another. In many cases, government agencies seek to adjust budgetary allocations after being unable to spend the earmarked money.
Almost every year, the ministry has been allowing large budget transfers toward the end of the fiscal year. According to the MoF records, the cash transfers under non-budgetary headings has been growing year on year.
During the first eight months last year, the government carried out a budget transfer worth Rs 97 billion. In the fiscal year 2019/20, the government transferred a cash amount of Rs 90 billion under non-budgetary headings in the entire year.
