The country is in need of a hospitality and entertainment guidelines specifying the principles, scope, and purpose of such expenditure. In its absence, the annual audit report 2019 reveals various inconsistent practices adopted in the use of the budget.
As per the report, the purpose of hospitality and entertainment expense ranges to a wide extent because of which there is difficulty in ascertaining the admissibility of certain expenditures. There is a risk of indiscriminate use and misappropriation of government funds. In between 2016 and 2018, around Nu 14.5 M remained as unjustified expenses from the hospitality and entertainment budget of ministries and the cabinet secretariat.
“It was going on from the first government but we didn’t embark during the first government’s time because we didn’t think that this would be an issue. When we go on auditing other agencies and when it is rampant, then only we embark based on our risk assessment. So at that point in time, the risk may not have been severe but now the government will come and go. So that’s why if there is no such guideline, there will be a severe financial burden on the government’s exchequer,” shared Chimi Dorji, the Dy. Auditor General at the Royal Audit Authority.
The ministries incurred unjustified expenses on soelra, nyendhar, khaddar, semso, tshokchang and donations among others, which are discretionary.
“The important post holders were given discretion grant by the government. Then again there are expenses booked under hospitality and entertainment budget. Some of the major observations we found were, from our opinion, not to be booked under hospitality and entertainment expenses like chagyeps, nyendhars and then the expenses for the purchase of khadars and soelras or tips to the people who have come to see them. These nature of expenditures should be booked under a discretionary grant which is provided specifically by the government to those post holders,” he said.
Having a guideline will provide appropriate control over such expenses.
“There is no proper uniformity in spending. We have varying amounts spent by different agencies when our ministers visit constituencies, dzongkhags, any offices and when they host official guests from outside and within. So had there been proper guideline, it will definitely channel properly for accounting purpose and booking, so all these can be controlled,” he added.
Against such, the Deputy Auditor-General shared that the Finance Ministry drafted a hospitality and entertainment guidelines, which is in the cabinet for deliberation.
Sonam Pem
