A recent government study has revealed that more than Rs 40 billion is sitting idle in just ten different funds operated by various public institutions. These funds—originally created to cover employee retirement benefits, medical expenses, gratuity, and other welfare payments—have accumulated billions over the years, raising concerns about financial transparency and long-term liability management.

According to the study, several government and public agencies have independently established and managed these funds, collecting money through employee contributions as well as direct government support. Although such funds are legally permitted, the report warns that self-managed reserves are increasingly being used for purposes beyond their original mandate, creating risks when actual retirement obligations come due.

Among the institutions examined, Rastriya Banijya Bank (RBB) holds the largest reserve, with Rs 25.71 billion parked in its fund. Similarly, Agricultural Development Bank (ADB) has accumulated Rs 12.20 billion.

The report lists several other institutions with significant balances:

Nepal Airlines Corporation – Rs 610 million
Public Service Broadcasting Nepal – Rs 420 million
Deposit and Credit Guarantee Fund – Rs 389.5 million
Nepal Tourism Board – Rs 350 million
Securities Board of Nepal (SEBON) – Rs 188.9 million
Nepal Water Supply Corporation – Rs 120 million
Herbs Production & Processing Co. Ltd. – Rs 76.8 million
Kathmandu Valley Water Supply Board – Rs 30 million

These funds are being used to pay for employee retirement, medical assistance, gratuity and other benefits. Employees contribute a portion of their salaries, while the government also injects money into several of these accounts.

However, the study cautions that the lack of unified oversight and standard management procedures has allowed institutions to divert funds for unrelated expenditures. If this continues, the government may face liquidity challenges when large-scale retirement obligations arise in the future.

Experts say the findings highlight the need for stronger regulation, centralized monitoring and clearer rules governing the creation and use of employee welfare funds within public entities. Without reform, the accumulation and expenditure of these billions could pose fiscal risks for both the government and the institutions involved.