The outstanding arrears of government offices and state-run corporations across all three tiers of government have reached a staggering Rs 1284 billion, according to the 62nd annual report of the Office of the Auditor General (OAG) released on Wednesday. The report reveals a worrying trend of increasing arrears, with Rs 91.59 billion added in the last fiscal year (FY 2023/24) alone - marking a 9.45% increase compared to the previous year.

The recoverable amount has been categorized under four sections: auditing, revenue, foreign grants requiring reimbursement, and loan settlements. A detailed breakdown shows federal government offices account for Rs 375.47 billion of the total arrears, while provincial government offices owe Rs 30.48 billion and local government offices Rs 2.28 billion. State-run corporations contribute Rs 1.94 billion to the total outstanding amount.

President Ram Chandra Paudel expressed serious concerns about the growing arrears while receiving the OAG's annual report for fiscal year 2023/24 from Auditor General Toyam Raya at Shital Niwas on Wednesday.

"The consistent increase in government arrears each year poses a significant challenge to good governance," the President stated during the presentation ceremony.

Highlighting the gravity of the situation, President Paudel emphasized, "The expanding volume of arrears in government expenditures has become a matter of growing concern that demands immediate attention."

He called for stricter enforcement of financial laws and greater fiscal discipline across all government spending. The President urged all officials responsible for managing state funds to demonstrate higher accountability in reducing pending dues and directed the OAG to implement stronger measures to ensure economic discipline in public financial management. –With inputs from RSS