A new ordinance is in the offing for ensuring transparency and accountability in formulating budget and introducing chief accounts officer in every ministry, department and constitutional bodies, reports UNB.

The council of advisors has already given their consent in principle for formulating ‘The Government Wealth and Budget Management Ordinance 2008’, now that sweeping reforms are underway in the interim period against the backdrop of socioeconomic and political crises the nation is reeling from.

In the prelude to the draft Ordinance it is stated that the new law would ensure maintenance of public money, successful spending of public money, keep budget deficit and government loans under considerable position, and ensure development of macro-economy and transparency and accountability in formulating budget.

The prelude also says, “As parliament is not in the run, it is deemed by the President that necessary situation is prevailing for adopting such an ordinance.” Under the law, there will be chief accounts officer in all ministries and departments and constitutional organizations.

The secretary of the respective ministry or department will be chief accounts officer. In a constitutional organization, the chief of the organization will decide who will be the chief accounts officer in consultation with the Finance Division. The chief accounts officer will ensure skilled and transparent financial management, internal control system and effective internal audit system.

The draft Ordinance states that the chief accounts officer will be responsible for the effective, skilled and rationalistic usage of public wealth. “He will ensure that the expenditure of the ministry or division and subordinate department or organization will be done as per government rules and regulations,” the draft Ordinance adds.

The chief accounts officer will ensure the collection of all revenues, and restrict all types of unapproved, irregular, futile and wasteful expenses. He will also ensure that the budget from his ministry or department or organization was made up by following specified structure and timetable.

The draft ‘Government Wealth and Budget Management Ordinance 2008’ also specified the rules for government borrowing. It says that the government could borrow loans for financing budget deficit, re-financing loan taken early which expires the deadline, collect foreign currency for on-lending of public institutions and any other purpose specified by the government.

For budget monitoring the finance division will ensure organizing an appropriate institution for regular monitoring of progress in budget implementation.

The finance division will also formulate necessary rules and regulations for fair completion of budget monitoring. All ministries or departments or organizations will formulate an annual report and submit it as per the specified process, size and timetable set by the finance division.