50 percent of government profit is from NT: Annual Audit report

The annual profits of the state corporations for the fiscal year 2004/05 stands at Rs 7.4 billion out of which Rs 3.55 billion was earned by Nepal Telecom and Rs 1.32 by Rastriya Banijya Bank.

On the other hand, net loss of government agencies has reached over Rs 45 billion out of which Rs 2.3 billion was incurred in the fiscal year 2004/05. The net loss is 416 percent more than the original assets of the agencies.

According to the annual report of the Auditor General handed over to prime minister on Wednesday, the existing arrears in the government offices have reached more than Rs 26 billion while the arrear figures of the corporations and committees is less than Rs 4 billion. The main areas of arrears in the corporations include advance paid to the employees (Rs 6.70 billion), borrowing (Rs 3.9 billion), security bonds (Rs 14.9 billion) and debt (Rs 39.5 billion).

According to Auditor General Gehendra Nath Adhikari, the arrears on advance payment stood at 37 percent, an increment by Rs 1.6 billion compared to preceding year, which is quite abnormal.

The government has not been able to recover over Rs 2 billion from the state agencies which the government paid while taking financial guarantee of the state agencies to draw debts.

The net balance asset of the Rastriya Banijya Bank is negative by Rs 20.2 billion. In the preceding year, the bank had incurred loss of Rs 23 billion while it was able to earn Rs 1.32 billion profit in the fiscal year 2004/05.

The report also pointed out that the revenue of the Zonal transportation office in Bagmati went down by Rs 10 million due to the decision of the government to provide more concession on imports of foreign vehicles. nepalnews.com ia Dec 11 06