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Software ‘SuTRA’ to enhance financial reporting of local bodies of Nepal

Government of Nepal- Glocal Khabar

Kathmandu, February 23, 2018: Since the administration system of government has been changed from the single administration to federal government system, the central government will keep a close watch over the income and expenditure of the local units and provinces by using a computer software called ‘Sub-National Treasury Regulatory Application (SuTRA)’. The programme has been installed by the Public Expenditure and Financial Accountability (Pefa).

SuTRA is designed to enhance consistency and effectiveness of financial reporting across all tiers of government and aid the federal government in monitoring and implementing various budgetary and accounting activities. The implementation of the SuTRA software across all local and provincial units was approved by the government last November.

A web-based software developed and maintained by the Pefa Secretariat, a body under the Ministry of Finance, SuTRA will ensure that all the 753 local bodies and seven provinces maintain consistency, avoid confusion and repetition in keeping records of income and expenditure.

It will help to overcome logistical challenges related to budget allocations for various projects and programmed at the sub-national level. Additionally, it will facilitate provincial and local governments to formulate plans on resource mobilization. The data will help the Finance Ministry, National Natural Resource and Fiscal Commission and Financial Comptroller General’s Office to make the various decision.

Murari Niraula, one of the members of Pefa mentioned, “Launching SuTRA is an important step in implementing and optimizing the decision-making process at the federal government through a timely and consistent supply of information from sub-national governments.”

Damodar Regmi, the coordinator of the Pefa Secretariat, said SuTRA would help strengthen administrative federalism. Administrative federalism, according to Regmi, is the bridge between political and fiscal federalism, which together form three major aspects of federalism.

The Pefa Secretariat will roll out both online and offline modes of the software to enable local bodies and provinces to enter data even when there is no access to the internet.