Madhesh introduces procedure to settle government arrears, recover outstanding dues

JANAKPUR: The Madhesh Province Government has introduced a new procedure to settle outstanding government arrears, recover public dues and strengthen financial accountability across its ministries, offices and other public bodies.

The Madhesh Province Arrears Settlement Procedure, 2026, approved by the provincial Cabinet under the Administrative Procedure Act, 2018, sets out mechanisms for settling arrears identified through reports of the Auditor General and internal audits. It also establishes procedures for recovering government dues and monitoring progress in reducing arrears.

The procedure classifies arrears into three categories: amounts to be recovered, amounts to be regularized and unsettled advances. It requires public offices to maintain systematic records and verify outstanding amounts before taking steps to settle them.