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- Under secretary, Foreign Aid Department, Ministry of Finance (MOF)
- Public Administration Advisor of USAID and
- Accounting specialist of UNO
After a detailed and long study of 288 days, the committee reported a draft with
suggestion and recommendation for scientific, modern, improved and decentralized
accounting system in Nepal.

The draft was approved by Auditor General on 20 Magh, 2018 BS and by Government
of Nepal on 2 Chaitra 2018 BS. After the approval, the government implemented
that system of accounting since the fiscal year 2019/2020 BS, which was called 'New
Accounting System'. This system is still in practice today. It is popularly known as
Government of Nepal's Accounting system. It was implemented in the offices of
Kathmandu valley since the fiscal year 2019/2020 BS. Further, it was implemented in
Bagmati and Narayani zones in the fiscal year 2020/2021 B.S. Since. Shrawan 2025 BS,
it was introduced and implemented throughout the country. This accounting system
brought uniformity in accounting all over the country.

Objectives and importance of New Accounting System

New Accounting System was developed to remove all drawbacks of payment
accounting system and bring uniformity in system throughout the country. The
importance of New Accounting System is given below:
i. Based on double entry system: New accounting system is based on double
entry system of book keeping where every financial transaction has two aspects
debit and credit. So it is modern and scientific in nature.
ii. Helps in formulation of plans and policies: By supplying necessary data
and information, it helps in formulation of plans and policies. It also provides
suggestions and guidance to the government for preparation of proper financial
plan.
iii. Emphasis on banking transactions: It is based on banking transactions. Every
government office should deposit all revenues into bank and payments should
be made through cheque except petty cash expenses.
iv. Based on financial act and rules: It is based on financial acts and rules. All
the revenues and expenditures of government are recorded according to the
financial rule and act. So, it minimizes corruption and misuse.
v. Based on budget head: The new accounting system has classified budgets into
different headings for making expenditure of public funds. This provides the
clear guideline to keep the expenditure within budget limit.
vi. Helpful for audit: In new accounting system, there is a compulsory system of
audit. It helps to prevent the misuse of government revenues and its properties.
vii. Inter head budget transfer: In this system, the surplus amount of a budget
head can be transferred from one budget head to another budget head taking
the permission of either Finance Ministry or concerned authority.

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