Sixth Semester

BPA 422: Government Budgeting, Accounting and Auditing

The objective of the course is to provide students with a basic knowledge of budgeting, accounting and auditing so as to make them competent and capable of understanding the principles and theories of budgeting, accounting, and auditing as well as their significance and operation.


  1. Budget
    • Meaning
    • Features and component of budget
    • Classification of budgeting
    • Formulation of budget cycle
    • Theories of budgeting
    • Process of budget formulation and budget cycle
    • History of Budget in Nepal
  2. Accountancy
    • Conceptual foundation of Accountancy
    • Book-keeping and accounting: meaning and importance
    • Accounting: principles, concept and conventions
    • Double-entry system: meaning and features
    • Financial Transaction and Record Keeping (accounting records): Accounting equation, Journal, debit and credit rules, books of original entry, types of accounts and subsidiary books including cash books and petty cash book
    • Ledger accounts
    • Trial balance
    • Depreciation
    • Bank reconciliation
  3. Financial Statements
    • Income Statement: meaning, importance and contains/items of trading and manufacturing account, profit and loss and appropriation account
    • Balance sheet
    • Statement of shareholders’ equity
  4. Governmental Accounting
    • Financial administration of governmental of Nepal
    • Store Accounting: Introduction, features, importance and forms used for recording
    • Principles and procedures of Nepal Government’s expenditure accounting system based on budgetary accounting
    • Treasury Single Account
    • Budget Sheet and Ledger Accounts
    • Financial reporting by field offices.
  5. Auditing
    • Concept, importance, objectives
    • Types of Auditing
    • Internal auditing system of government of Nepal


  • Fess, Philip E. (1987). Accounting Principles. Dallas: South-Western Publishing Co.
  • Neeley, L. Padem & Imek, Frank J. (1987). Accounting Principles and Practice. Dallas: South-Western Publishing Company.
  • Koirala et al. (2072). Principles of Accounting. Kathmandu: Asmita Books Publishers and Distributors.
  • Koirala et al. (2072). Principles of Accounting II. Kathmandu: Asmita Books Publishers and Distributors.
Local Governance Specialization

LG 475: Local Finance in Nepal

The course intends to impart knowledge of finance especially in local bodies of Nepal. Students will be able to understand dynamics of local finance after completion of this course.


  1. Introduction: Concepts of local finance, Need and importance of Local Finance in Economic Development
  2. Fiscal Decentralization in Nepal: Approaches of Fiscal Decentralization, Fiscal Decentralization Policy and its dimensions
  3. Fiscal Federalism: Concept of Fiscal Federalism, Division of Fiscal Power and Functions: Allocation, Distribution and Stabilization, Vertical and Horizontal Fiscal Relationship
  4. Local Government Revenue and expenditure in Nepal: Sources of revenue at local bodes in Nepal: Tax and Non-tax , Grants in Aid, Local Government Borrowing, Pattern of Local Government Expenditure, Local budgeting, Local accounting and auditing
  5. Resource Mobilization at local bodies, Resource Mobilization at Local Body: DDC, VDC and Municipality, People’s Participation in Local Resource Mobilization, Role of Partnership for Local Resource Mobilization, Issues and challenges of local finance in Nepal, Case study


Acharya, Balaram (2062). Rural Development: Theories and Approaches. Kathmandu: National Book Center.

Adhikary, Shyam Prasad (2038). Rural Development in Nepal Problems and Prospects. Kathmandu: Lalitpur Sajha Prakashan.

AZIZ Sartaj(1978). Rural Development. London: The Macmillan Press Ltd.

Chambers, Robert (2004). Rural Development :Putting the Last First. Delhi: Pearson Education.

Das, Prabhakar Lal (2054). Sociology of Rural Society. Kathmandu: Rekha Rani Prakashan.

Hada, Gambhir Bahadur (2062). Rural Economics of Nepal. Kathmandu: Dikshanta Pustak Bhandar.

Hada, gambhir Bahadur (2063). Rural Resources, Environment and Management. Kathmandu: Gyankunja Pustak Bhandar.

Singh, Katar (1999). Rural Development: Principles, Policies and Management. New Delhi: Sage Publication.