KATHMANDU: Today is the final day to disburse funds under the current fiscal year 2024/25, as all government accounts will be frozen for one week starting from midnight.
This annual closure is in line with Rule 30 of the Financial Procedure and Fiscal Accountability Regulatios, 2021.
According to Sushila Aryal, spokesperson for the Office of the Financial Comptroller General (FCGO), the closure applies to all accounts operated by the FCGO, Provincial Comptroller Offices, and District Treasury and Comptroller Offices.
With the implementation of the rule, the Sub-National Treasury Regulatory Application, Treasury Single Account, and the computer-based Government Accounting System will also remain inactive for a week.
This year, no circular was issued to stop budget releases in the last week of Ashar, as the regulation itself mandates the closure.
Rule 30 clearly states that no payments can be made during the final seven days of the fiscal year, except for specific expenditure headings exempted by the Appropriation Act. Any essential payments during this period require prior approval from the FCGO.
As of Tuesday, government spending had reached approximately 79 percent of the total budget for the fiscal year. According to data from the FCGO, around 84 percent of the recurrent budget, 53 percent of the capital expenditure, and 86 percent of the financial management allocations had been utilized.
The temporary account freeze is a standard part of Nepal’s fiscal management process and allows for reconciliation and preparation ahead of the new fiscal year, which begins on Shrawan 1 (July 16).
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