Office of the Financial Comptroller General Submits Integrated Financial Statement
30th December 2025, Kathmandu
The Office of the Financial Comptroller General has achieved a major milestone in public sector transparency by formally submitting the Integrated Financial Statement of the Government of Nepal for the fiscal year 2081/82.
Integrated Financial Statement Submission
This comprehensive report, which consolidates the financial activities of the federal, provincial, and local governments, was presented to Finance Minister Rameshore Prasad Khanal and Auditor General Toyam Raya. Led by Financial Comptroller General Shobha Kanta Paudel, the submission follows the legal requirements of the Economic Procedure and Financial Accountability Act 2076. This integrated approach provides a clear and unified view of the national treasury, ensuring that policymakers and the public have access to accurate data regarding the financial health of the state across all three tiers of the federal structure.
LEGAL AND INSTITUTIONAL MANDATE FOR CONSOLIDATED REPORTING
Under the Constitution of Nepal and current financial regulations, the Office of the Financial Comptroller General is the sole authority responsible for managing the Federal Consolidated Fund. Its mandate extends to preparing the integrated accounts for the federal government, all seven provincial governments, and all 753 local governments. This reporting is essential for maintaining fiscal discipline in a federalized system where spending and revenue collection are decentralized. By submitting this report within the legally prescribed timeline, the office has demonstrated its commitment to institutional accountability and the high standards required for public financial management in a modern democracy.
KEY FISCAL HIGHLIGHTS: REVENUE AND DEFICIT ANALYSIS
The integrated financial statement for the fiscal year 2081/82 reveals a complex fiscal landscape. The report indicates that the combined consolidated fund balance, representing the federal, provincial, and local levels, reached a deficit of 108.99 billion rupees. This deficit highlights the gap between total government revenues and the extensive expenditures undertaken across the country. However, despite the deficit in the consolidated fund, the overall cash position remained positive, standing at 104.13 billion rupees. This distinction is vital for understanding that while the government has budgetary gaps, it maintains sufficient liquidity to handle its day to day operational requirements and immediate financial obligations.
LIQUIDITY POSITION AND EXTRA BUDGETARY FUNDS
A significant feature of this year’s report is the inclusion of extra budgetary funds, which provides a more holistic view of the national wealth. When these special purpose funds are included, the total cash and bank balance of the government rises significantly to 188.94 billion rupees. These funds operate outside the regular annual budget but are legally recognized and managed for specific sectors or social security purposes. Including these figures allows the Office of the Financial Comptroller General to present a comprehensive picture of government liquidity, which is often much stronger than what the regular consolidated fund balance alone would suggest to observers and international financial institutions.
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ADHERENCE TO NEPAL PUBLIC SECTOR ACCOUNTING STANDARDS
To ensure the reliability and international comparability of the fiscal data, the report was prepared in accordance with the Nepal Public Sector Accounting Standards. These standards, approved by the government and the Office of the Auditor General, mandate a uniform format for reporting revenues, expenditures, and intergovernmental fiscal transfers. This standardization is crucial in a federal system to prevent discrepancies between how a local municipality and the federal ministry record their financial data. The use of these rigorous accounting principles enhances the transparency of the report and makes it a dependable document for auditing and future policy planning.
SIGNIFICANCE FOR FISCAL TRANSPARENCY AND ACCOUNTABILITY
Governance analysts have praised the submission of the integrated financial statement as a victory for fiscal transparency. In a federal system, tracking the flow of funds between the center and the sub national governments is often a challenge. This consolidated report simplifies that complexity by identifying where structural imbalances exist. It allows the government to assess the effectiveness of its fiscal discipline and helps oversight bodies like the Office of the Auditor General to conduct more focused and data driven audits. By disclosing both the deficit and the liquidity positions clearly, the government is building trust with its citizens and international development partners.
POLICY IMPLICATIONS AND FUTURE FISCAL COORDINATION
The data presented in the 2081/82 report carries heavy implications for future economic policy. The 108.99 billion rupee deficit underscores the need for better revenue mobilization and more efficient expenditure control across all levels of government. It also points to the necessity of improved fiscal coordination between the federal center and the provinces to manage the consolidated fund more effectively. As Nepal continues to mature in its federal journey, the reliance on integrated financial reporting will only grow. This data will serve as the foundation for future budget speeches, debt management strategies, and decisions regarding intergovernmental fiscal equalization grants.
CONCLUSION AND FINAL THOUGHTS ON PUBLIC FINANCE
In conclusion, the submission of the Integrated Financial Statement for the fiscal year 2081/82 by the Office of the Financial Comptroller General is a vital step toward a more accountable and transparent Nepal. By consolidating the accounts of 761 different government entities into a single, standardized report, the office has provided an invaluable tool for national development. While the consolidated fund deficit remains a point of attention, the healthy liquidity position of 188.94 billion rupees offers a measure of stability. This report reinforces the importance of prudent financial management and sets a high bar for future fiscal reporting in the country.
