Govt prioritizes arrears clearance, targets major hospitals & reforms
KATHMANDU: Health and Population Ministry Secretary Bikash Devkota has said that the government is prioritizing arrears management by focusing on major hospitals and conducting targeted clearance efforts based on detailed analysis.
Speaking at a meeting of the Public Accounts Committee, Devkota said that a special review will be carried out on large hospitals where the volume of arrears is significantly high, and a focused plan will be implemented for settlement.
According to him, over Rs 5 billion in arrears has been identified in just two major institutions — BP Koirala Institute of Health Sciences and Bir Hospital — which accounts for nearly one-fourth of the total arrears in the health sector.
He said the ministry plans to analyze the nature of arrears in these major hospitals and move forward with a targeted clearance mechanism. Special programs for arrears settlement are also expected to be included in the upcoming fiscal year, aimed at improving accountability and accelerating the resolution process.
Devkota noted that a large portion of arrears is linked to procurement processes, and suggested that a centralized rate-setting system across federal, provincial, and local levels could help reduce such issues.
He emphasized that internal reforms in procurement and financial management are essential to improving transparency and reducing future arrears.
Also speaking at the committee meeting, Prime Minister and Council of Ministers Office Secretary Govinda Bahadur Karki said that arrears could be significantly reduced if a clear and structured action plan is implemented effectively.
He stressed that arrears settlement should be prioritized by all agencies and noted that many cases fall under categories requiring regularization, documentation, or verification by office heads, accountants, and ministries before submission to the Office of the Auditor General.
Karki added that arrears creation and settlement should be incorporated into employee performance evaluation to strengthen accountability. He also said that an action plan has already been prepared to address the issue more systematically.
From the Ministry of Industry, Secretary Krishna Bahadur Raut highlighted difficulties in arrears clearance due to the destruction of important documents, which has made it challenging to verify required evidence. He also mentioned that several files submitted to the Office of the Auditor General are currently pending due to procedural issues.
Raut further said that legal ambiguity over the past two years contributed to the increase in arrears, as unresolved regulations delayed settlement processes.
He informed the committee that the ministry has formed a dedicated arrears settlement committee under legal provisions and is actively holding regular discussions with department heads and accounting officers to expedite the clearance process.
Officials reiterated that the government is committed to prioritizing arrears management and strengthening financial discipline across ministries and public institutions.
