Minister for Finance Yubaraj Khatiwada has remarked that the state coffer is virtually empty due to the sheer violation of budget rules and regulations.

Minister Khatiwada said so while informing the lawmakers about the current economic condition of the country before presenting the “white paper” in the House of Representatives on Friday.

“Tax has been found deducted against the established system and norms. There are tendencies to show the sources without proper plan and basis for the sake of implementing the projects,” he said, addressing the parliament, adding, “The government has been facing difficulties to estimate the propose budget as the projects which were guaranteed of resources in the last fiscal year were not included in this year’s budget.”

The government has not been able to monitor expenses of the donation provided to the local levels, he said, adding that Nepal’s economic condition was challenging when the new government was formed.

“The public finance management has been facing a lot of challenges due to lack of implementation of budget prepared amidst uncertainty, and tendency of making unnecessary expenses,” he said. “The government has not been promised of foreign aid and failed to mobilise the received aid,” he added.

Minister Khatiwada said the mobilised fund of the finance sector has not been directly connected with the economic growth.

“Service is not easily accessible and effective,” he lamented, adding, “The state mechanisms are getting pathetic due to weak governance.”

After the country ushered into federalism, the administrative expenses will be increased and additional resources will be needed for the development of all the local levels, he noted.