Kathmandu, September 27

The government has launched integrated public finance management reform programme to execute the second phase of public finance management reform programme (2016-25).

The government will mobilise $15 million for the purpose from the multi-donor trust fund, administered by World Bank Group. The government has signed a pact to mobilise the multi-donor trust fund, including resources worth $3 million from the government.

The Financial Comptroller General Suresh Pradhan launched integrated public finance management (PFM) reform programme today.

Under this programme, public finance management reform that includes the institutional capacity development of associated institutions, legal and procedural reform of three layers of government — federal, provincial and local — will be carried out.

The Ministry of Finance, Office of the Auditor General, National Planning Commission, Public Accounts Committee, Ministry of Federal Affairs and General Administration, Public Procurement Monitoring Office, Financial Comptroller General Office (FCGO), Public Expenditure and Financial Accountability Secretariat, and Institute of Chartered Accountants of Nepal will be engaged in execution of the programme.

The programme has four major components. These include strengthening of public expenditure and revenue management in federal and sub-national governments, strengthening the Office of the Auditor General, improving the public procurement and PFM reform management and coordination, as per FCGO.

The programme has aimed to develop uniformity in budgetary system in every layer of the government, improve aggregate capital budget out-turns at the federal level, develop comprehensive accounting and reporting procedures in federal and sub-national governments, improved audit planning and quality management of audit of federal and sub-national entities, improved timeliness of contract awarding in selected key sector agencies at federal level and selected sub-national governments, according to Pradhan.

The multi-donor trust fund was established in December 2010 to support the government’s public finance management strategy. The fund administered by the World Bank Group has been funded by UK Department of International Development, USAID, European Union and government of Swiss Confederation.