Reimbursement collection improves, pending amount drops to Rs 13 billion
In previous years, a substantial portion of these funds remained uncollected.
KATHMANDU: The collection of reimbursement funds has shown significant improvement, with the pending amount now standing at Rs 13.13 billion.
In previous years, a substantial portion of these funds remained uncollected.
According to the Office of the Financial Comptroller General, at the beginning of the fiscal year 2081/82, Nepal had an outstanding reimbursement claim of Rs 20.58 billion.
This included Rs 6.25 billion in grants and Rs 14.33 billion in concessional loans.
By the end of Poush, Rs 18.22 billion was still pending for reimbursement, while Rs 25.66 billion had been successfully collected.
This marks a significant improvement compared to the previous fiscal year when the pending amount during the same period was Rs 17.21 billion.
The Financial Comptroller General’s Office has reported notable progress in reimbursement collection, easing pressure on government resources and the country’s balance of payments.
In the past, delays in reimbursement had led to financial strain.
Donor agencies disburse reimbursements based on actual project expenditures, but in previous years, delays in reporting actual spending had caused reluctance among donors to release funds.
What is Reimbursement?
Reimbursement refers to the process where the Nepal government initially funds foreign-aided projects from its own resources. After spending, it submits claims to donor agencies for reimbursement.
This system ensures project execution without waiting for direct donor disbursements while maintaining cash flow through post-expenditure reimbursement.
Donor agencies follow the reimbursement model to ensure financial accountability, releasing funds based on verified project expenditures.
