Chief Secretary Eknarayan Aryal, along with secretaries from most ministries, constitutional commissions, and agencies, has urged the exploration of alternative measures to address outstanding arrears, stating that clearing dues accrued before the implementation of federalism is not feasible.

The Public Accounts Committee (PAC) of the House of Representatives held discussions on Monday with accounts officers from various agencies regarding the status of arrears settlement.

During the meeting, secretaries argued that federal ministries are burdened with arrears from defunct agencies and structures, even after responsibilities were delegated to the provincial and local levels under federalism.

Chief Secretary Aryal and Auditor General Toyam Raya both maintained that irregular arrears dating prior to the promulgation of the Constitution in 2015 could not be realistically settled.

“The previous District Development Committees have been dissolved, and there is no record of where their files are stored, yet their arrears are still maintained at the federal ministry,” Aryal said. “Arrears that can be settled should not be left unattended, but theoretical arrears must be addressed through a separate decision as they cannot be practically cleared.”

Aryal stressed that separate measures would be required for dues predating the Constitution’s implementation, noting, “It is not possible to regularize arrears before 2015.”

Auditor General Raya echoed Aryal’s remarks, saying, “After listening to the chief secretary and secretaries, it seems reasonable to dismiss irregular arrears prior to 2015. There is no clarity on whether the documents from offices transferred to local levels are retained at provincial or local offices. We need groundwork to find a solution.”

The PAC has directed all line ministries, constitutional commissions, and agencies to submit an action plan responding to a 13-point questionnaire detailing the status of arrears and the measures being undertaken to address them.

According to the 62nd Annual Report (2025) of the Office of the Auditor General, arrears totaling approximately Rs 733.19 billion were identified in the audits of federal, provincial, and local government offices as well as other institutions. -- RSS