Nepal: Report on Observance of Standards and Codes: Fiscal Transparency Module
IMF Staff Country Reports, October 11, 2007
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- Nepal: Report on Observance of Standards and Codes: Fiscal Transparency Module
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Bibliographic details
- Published: October 11, 2007
- Series: IMF Staff Country Reports
- DOI: https://doi.org/10.5089/9781451830095.002
Key findings on fiscal transparency
- Broad objectives of fiscal policy have been included in the budget speech.
- The sustainability of fiscal policy over the longer term is not examined.
- Public reporting on the performance of programs during budget implementation is weak.
- The government has undertaken a review of overall economic development and revised the estimates of revenue and expenditure.
- Internal control procedures are not fully effective.
- The accounting system needs to be substantially strengthened.
Implications for public financial management
- Weak public reporting on program performance limits accountability during budget implementation.
- Lack of long-term fiscal sustainability analysis impedes evaluation of fiscal policy risks.
- Ineffective internal controls and a weak accounting system increase risks to the reliability of fiscal data and financial management.
Suggested areas for reform (as indicated by the report)
- Introduce regular analysis of the sustainability of fiscal policy over the longer term.
- Strengthen public reporting on program performance during budget implementation to enhance transparency and accountability.
- Improve internal control procedures to ensure more effective financial oversight.
- Substantially strengthen the accounting system to improve the quality and reliability of fiscal information.