Bijay Damase

July 25: The current expenditure of the government has increased sharply in the last decade.

Although the government has been chanting the slogan of austerity measures on public expenditure through policies and programmes every year, in practice, the current expenditure seems to be increasing unnaturally.

As per the data of the past ten years, it seems that the current expenditure has quadrupled. The current expenditure which was Rs 247 billion in the fiscal year 2012/13, has reached Rs 966 billion in the fiscal year 2021/22.

Due to the arbitrary distribution of financial aid, duplicity of agencies and unnecessary posts under them, the current expenditure of the government is increasing unnaturally.

According to the 59th report of the Auditor General, in the year 2021/22, the Ministry of Home Affairs distributed Rs 79,367,000 to VVIPs in the form of medical treatment and financial assistance.

Although it is mentioned in the procedure that one person can be given financial assistance up to Rs 700,000, the report of the Auditor General revealed that the government distributed up to Rs 2.5 million to an individual that year.

In the same year, the Ministry of Home Affairs provided financial assistance of Rs 10 million to a shelter and another Rs 2 million to a cultural development fund, according to the report of the Auditor General.

Although there is a provision in the Public Health Act 2075 that if treatment is required abroad, the government will not bear the expenses incurred for it, but the Auditor General's Office concluded that the government violated this procedure.

A report of the Public Expenditure Review Commission formed by the government shows that the current expenditure of the government has  increased due to lack of sufficient basis for allocation of budget for current expenditure and clear criteria for expenditure headings, and internal audits. Dozens of suggestions made by the commission to reduce expenses have not been implemented.

Former secretary Bimal Wagle says that due to the trend of adding expensive vehicles and expensive goods in the office, the revenue raised in the country is not able to cover the current expenses. Although it is reasonable for the current expenditure to increase in accordance to inflation in one decade, it is not a good sign for it to increase so much abnormally.

 “There are enough places where the government can reduce expenses, but no one is willing to do it,” says Wagle.

  According to Wagle, it seems that public bodies and people holding public positions are not able to adopt caution in expenses such as office supplies, food, water, electricity, and fuel in connection with government work.

Some of the development committees, commissions, institutes, authorities, corporations, foundations, boards, centers, and councils that are currently running with government funds are unnecessary. They are also increasing public expenditure.

Wagle says that the government bodies should be restructured or abolished after reviewing issues like duplication of work and responsibilities, the bodies that have been transferred to the provincial and local levels, or those that are not considered necessary to continue.

Jagadish Chandra Pokharel, former vice-chairman of the National Planning Commission, says that there is a growing threat that the increasing current expenditure will have a negative impact on the entire economy. According to him, the main reason for the increase in current expenditure is that the policies taken by the government for cost management are not effectively implemented. He said that such policies should be strictly implemented to prevent current expenditure from going out of control.

Similarly, he said that attention should be paid to actions such as reducing wasteful expenditure, improving the pension system, abolishing unnecessary ministries and agencies and appointing officials only where necessary.

Dhundi Prasad Niraula, joint secretary of the Ministry of Finance, says that the current expenditure has been increasing recently due to the increase in mandatory obligations along with inflation. According to him, current spending is being done according to the policy adopted by the government. He claimed that since the budget has provision for reducing unnecessary expenditure, it will be implemented effectively.