In a bid to ease payment method, the government is set to make a direct payment to parties for their work and services.  

A meeting of Prime Minister’s Office, Financial Comptroller General Office (FCGO), Ministry of Finance, and Federation of Nepalese Chambers of Commerce and Industry on Sunday agreed to make transfer payment directly into private parties’ accounts upon completion of government tenders, construction works.

“The new provision will come into force from July 16,” said Kedar Bahadur Adhikari, secretary at the Prime Minister’s Office. Under the provision, the FCGO across the country can make payment to the private parties directly. “It is being introduced for a hassle-free payment mechanism,” he added.

At present, the FCGO pays through cheques to the concerned government offices responsible for tenders of construction works and other types of payments like consultancy, stationary. Those government offices would transfer the payment into certain party’s bank account following a clearance from the FCGO.

But this payment method has been subjected to frequent complaints of bureaucratic hassles from parties involved in various development works, tenders, construction works among others.

“We have simplified the payment process. Once the new system comes into force, it should not take more than three days,” Adhikari said, adding that the central bank and the Auditor’s General Office will prepare guidelines on this matter.

The delay in payment has affected several large and small projects, leading to failure in meeting deadlines and at times to contractors abandoning projects.

The PMO has also instructed some government agencies to conduct a feasibility study on the possibility of collecting revenue online, Adhikari said, adding that the Public Service Commission, the Department of Passport and the Department of Transport Management—major sources of government revenue—will be doing such feasibility study in the first phase.

“These are large public service entities. We have asked the Department of Revenue for its suggestions on this regard,” said Adhikari.