Fiscal Year: 2002/2003 (2059/60)

FOREWORD

Public expenditure generally denotes expenditure made in order to fulfil the necessities of the people. It is essential that the government should inform the people about where, how, why and how much expenditure was incurred. This report is the result of efforts made by the Financial Comptroller General's Office (FCGO) to undertake public expenditure tracking survey with a view to achieve the above objective. In the present study, attempts were made to track the expenditure incurred from grant in aid and scholarship budget disbursed by the government to primary, lower secondary and secondary schools. In the course of the study, review was made of the time taken for the flow of budget authority and budget release. In addition, analysis of expenditure incurred at the Ministry of Education (MoE), Department of Education (DoE) and District Education Offices (DEOs) out of the grant in aid budget was also done. Furthermore, aspects like financial management, physical facilities, academic activities, inspection were also subjected to review.

This study was accomplished by mobilising the manpower available under the FCGO. This being the first effort of FCGO in this type of work, some deficiencies and weakness might have resulted in the present study. The suggestions received from the experts would definitely help in undertaking similar type of study and research work in future in a better way.

I would like to express my heartfelt thanks to United States Agency for International Development (USAID) for financing the cost of this study. I would also like to thank the Nepal Resident Office of the World Bank for the co-operation extended by them to the study team to hold interaction with experts through videoconference. Similarly, I would also like to appreciate the co-operation extended by MoE, DoE and DEOs and the concerned schools during the period of the study.

Last but not least, I would also like to thank Mr. B. K. Bhattarai, Deputy Financial Comptroller General, Mr. A. K. Rimal, Accounts Officer and Mr. S. K. Mishra, Accountant and other staff of FCGO involved in the study. I am also thankful to the staff of DTCOs who were involved in the collection of data during the course of the study.

4 June 2003

Naryan Prasad Silwal
Acting Financial Comptroller General
Financial Comptroller General's Office

ABBREVIATIONS

• Department of Education : DoE
• District Development Committee : DDC
• District Education Office : DEO
• District Treasury and Controller's Office : DTCO
• Financial Comptroller General's Office : FCGO
• Government of Nepal
• Ministry of Finance : MoF
• Ministry of Education : MoE
• Non-government Organisation : NGO
• Office of the Auditor General : OAG
• Regional Treasury Directorate : RTD
• School Leaving Certification : SLC
• School Management Committee : SMC
• Statistical Package for Social Science : SPSS
• United States Agency for International Development: USAID
• Village Development Committee : VDC

Executive Summary