Misuse of Government Funds & Its Disadvantages in The Country As Well As Society

Misuse of Government Funds & Its Disadvantages in The Country As Well As Society

Definition of government fund

As a company operates, the government also establishes fixed accounts for certain expense designations. Funding is a billing system created to raise limited resources by donor agencies, individuals or government agencies. Government agencies use it to report on their accounting, as it involves tracking and accountability of spending processes.

Instead of profitability, fund accounting focuses on the responsibility of spending. A government fund is a grouping to account for the tax-backed activities carried out by the federal government.

The opposite is a proprietary fund that takes into account government business activities. There are several types of state funds, each of which has a balance sheet. Under the umbrella of a sovereign wealth fund, a branch shows that it has spent the money it has allocated appropriately while maintaining a balance.

Groups of government funds

There are three main groups of state resources. These groups are state, corporate and fiduciary. In the accounting world, an account that belongs to a fund is often due to the fact that it does not fit in other names.

Under each of these three groups there are types of sovereign wealth funds. Now let’s look at the different types of government funds.

Types of state funds

Does it refer to the functions of a typical government? If so, it corresponds to the state resources used to collect and balance cash, data and liabilities for all activities. Police, fire departments, other rescue services and more are included in these types of funds. State resources include:

General fund

A general fund is the main operating fund for the entire government. It easily serves as a common fund for resources that are not necessary or intended for another fund. For example, the tax money generated by the federal government flows to the general fund.

a man showing a budle of Nepalese rupees money cash in hands
A man is showing a budle of Nepalese rupees
Special income funds

These are used to track income from specific sources that are limited to specific purposes. It is the most widely used fund and is typical for financing libraries, schools and parks. Citizens can see the income generated by the construction or maintenance of these specific sources.

Debt service fund

A debt service fund is used to pay the long-term debt issued to finance certain government projects. This includes capital and interest payments.

Funds for capital projects

This includes funds for the construction of large projects or facilities. Investment projects generally include working in durable facilities such as libraries or government buildings.

Permanent fund

This is a limited endowment fund that generates and pays money for those entitled to receive it. For example, one of the most popular payments for permanent money is granted to Alaska residents for government oil revenues.

Misuse of government fund

Lack of financing is a common problem for new businesses and small businesses. About 79 percent of new businesses fail because they start with very little money. In addition, about 77 percent of small businesses in the first months depend on personal savings.

If you plan to start a business or expand an existing one, you should consider government grants. These are non-refundable funds paid to individuals, businesses, charities, educational institutions and more. As an entrepreneur, you can take advantage of government grants and grow your business.

These funds are granted to organizations, artists, students and almost everyone who has an interesting idea or an interesting project that serves the common good. Unlike loans, they are not expected to be repaid and do not imply technical or financial support.

For example, Engine Precision Medicine, a cancer research startup, received a $ 3.1 million grant from the National Institutes of Health. As long as you have a clear plan and purpose, it may be worth requesting one. Keep in mind, however, that the terms and conditions are very strict.

The most difficult aspect of a grant application is the preparation of the proposal. No matter how innovative your project is, it’s worth nothing without a compelling proposal and a solid plan. Government agencies generally have very strict criteria. Therefore, completing a successful proposal requires a lot of research and knowledge.

Another disadvantage is that government subsidies are often conditional. Even if you qualify for one, you cannot use the money as you wish. It is imperative that you stick to the original plan and follow the rules. You should also track your progress and send periodic reports to the agency that awarded the grant.

If you violate the rules, you may be asked to refund the money. Keep in mind that most government grants are short term. If you run out of money, you need to find new sources of financing. That is why it is important to use the money wisely and make the most of your scholarship.

Ultimately, the benefits of state subsidies outweigh the disadvantages. If you are prepared to invest the time and effort necessary to secure the financing, you must opt ​​for it. Just make sure you’re ready to be rejected more than once.

Try until you find a grant that fits your specific project and matches your goals.

Some disadvantages of misuse of state funds are:

1. Corruption:

There is the possibility of complete dissemination and permanent corruption. A Democratic leader is in position for a limited time. Then there is a tendency to make money with power. As soon as he loses his power, he can live in another country and evade the laws of the country.

Political corruption is the misuse of public power, charges or resources by government officials elected for personal gain, by blackmail, solicitation or offering of bribes.

It can also take the form of charge holders who claim to be themselves in office through the acquisition of votes through laws that use taxpayers’ money. There is evidence that corruption can have political consequences. The demand for bribes means that citizens are less likely to identify with their country or region.

The political act of transplantation (American English) is a known and now global form of political corruption, which is the unscrupulous and illegal use of the authority of a politician for personal gain, when money destined for public projects is deliberately mistaken to reach maximum benefits for illegally private interests of corrupt people and their friends.

Due to the excessive cost of the outside toilet, it was called the “Golden Toilet”. Despite the investment, the “Golden Toilet” remained closed for years due to the malfunction and was the subject of a long investigation against those who created it, and the local community even considered demolishing the building in one place.


The group of officials involved in the acquisition of the toilet received several prison sentences in a 2012 court case for recklessness, misconduct, abuse of power and document fraud.

However, they were exempted from their corruption allegations and received compensation, which increased total construction costs and consequent costs, thereby increasing financial losses to € 352,000.

Several sources praise the Spanish Popular Party, the Popular Party, as the most corrupt party in Europe with an annual volume of corruption of approximately 45 billion euros.

Therefore, it is easy for industries and businesses to invest and obtain inappropriate benefits from other nations by bribing this head of state. This is so common that dozens of American companies are exposed to bribery in another country.

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In a democracy, corruption opportunities cannot be controlled as long as people across the country want to avoid it. This includes leaders, officials, people, businessmen, etc. Even if you are not in the mood to avoid corruption, the entire system will gradually change to corruption.

2. There is no protection for the common man:

There is no protection for the common man, since the leaders themselves try to misbehave or mistreat the public. Security and the police also treat injustices differently.

They favor those in power or the rich and neglect or even cause discomfort to those who are sick or socially weak.

3. Divide and rule:

Leaders try to play parts and rules games. They divide people by religion, caste, language, etc., and try to get votes to gain power, although it is not worth ruling the state or the country.

This technique is intended to empower the sovereign to control subjects, groups of people or factions with different interests, which together can challenge his government: a captain must fight with each art to divide the enemy forces.

Machiavelli advises that this act be done either by making him suspect his men, whom he trusts, or giving him the reason why he should separate his forces and for that reason weaken.

Elements of this technique include:

  • Create or promote divisions between subjects to avoid alliances that can challenge the sovereign.
  • Support and promote those who are willing to work with the sovereign.
  • Promote distrust and hostility among local rulers.
  • Promote meaningless expenses that reduce the capacity for political and military spending.

4. Unfair business:

Encourage unfair business practices to obtain support for election campaigns. Unfair commercial practices include fraud, misrepresentation and oppressive or unintelligible acts or practices of companies that are often directed against consumers and are prohibited by law in many countries. In many areas, unfair business practices may occur, including:

  • Lease Law
  • problems of advertising and sale of products and services to consumers
  • matters related to insurance claims and their settlement
  • Payment in case of late payment.

In addition to granting damages, the law may also provide for the granting of punitive damages and the payment of attorney’s fees.

Under current law, people in most states were not entitled to any attorney fees or punitive damages for illegal acts of corporations. In most cases, laws prohibiting unfair business practices require consumers to send a formal notice letter to the company before the litigation begins.

If the Company does not present a reasonable settlement offer within a certain period of time and is subsequently held accountable in court, it may be liable under many laws for punitive damages and reasonable fees of the injured party.

In some cases, the statutes stipulate that current plaintiffs can claim double or triple real damages against non-resident defendants.

They provide a strong incentive for companies to clarify the claim in the context of the settlement process rather than risk a most expensive judicial decision.

We can see this as the majority of politicians who support the rich against cash benefits, such as party funds, etc.

5. Power:

The only motto of politics is to come to power and hold on to it. There are very few leaders who work for the benefit of the country. Democracy is designed to choose someone who has the right and has enough experience to govern and move the nation forward.

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But the parties compete for power without having the right candidate for the position. They use various means, such as money, protests and strikes for the public. Previously, these strikes and protests led to the French Revolution, the American Revolution, etc. and the democracies were founded. But currently behind every strike and protest is the hand of a political party.

Political parties can even prevent the proper functioning of parliaments and the Senate. In places where there are several parties in a house. We can notice events in which one of the parties is trying to block the house and see that the voice of others is not heard.

Also due to these strikes and politically provoked protests, the common man is lost. During the attacks, stores and markets remain closed. In a sense, too much freedom leads to conflict instead of prosperity.

6. Dynastic politics:

The ignorance of the masses is eliminated. Freedom means that anyone can be chosen by the masses to rule. But we can see that there are also dynastic rules. Grandparents and grandchildren of the same family are in power. This may be shown in some countries. That is because they emotionally exploit the masses.

In the past, during the reign of the kings, the successors of the throne were rude to the people. They did not even know the problems of the laity. Then they could not impose a peaceful rule. Democracy is a way to overcome this problem.

In a democracy, any person chosen by the public must rule the nation. But the dynasty families form a party, and all their party workers work for them. This destroys the basic idea of ​​democracy.

Even people vote for them because they are fed by the media and party officials. Therefore, you will see selfish and less capable people taking power in their hands.

You can even find that movie actors come to power without much exposure. This is because people do not foresee the consequences of such a rule. They only choose without thinking about the future. They do it for their castes or cinematographic or media heroes that created gods.

7. Abuse of the media:

In dictatorial and municipal regulations it is clear that journalists claim their freedom and rights. In democracy, the media try to trick people into influencing voting behavior.

In many countries, media channels work for one or the other part. They don’t even have value for the prospects of a nation. They even make news that can be problematic for the security of the country.

His goal will only be to present such an evil leader and others as the right to favor his election results. This is possible because few political parties or leaders control the media.

8. Lack of justice:

Democracy is one in which the application of the law is delayed. You can see that in the real kingdom the punishments after the crime are not only strict but also very fast.

However, in a democracy, punishment can be imposed after everyone involved in the case has aged or even died. Freedom, therefore, may seem vicious.

9. Unfair participation:

Not all people participate in the vote. They do not use their right to vote due to lack of interest or lack of laziness. Sometimes they do not vote if the candidate of interest is not available.

In the recent US elections, black Americans did not vote because they had no interest. In the previous elections, they voted for Obama, who was not white.

10. Emotional manipulation:

Politicians try to get votes through the emotional manipulation of the human mind. This is widespread in the name of nationalism, secularism, accusations of stopping, long-standing demands, etc.

This emotionally connects people with this party or leader. In the process, people vote without thinking of other factors that can be abused.

11. Disruption of public relations:

The perception of a political party varies from person to person. This includes members of a family. A husband wants to vote on the one hand while his wife is on the other hand.

Similarly, this happens among brothers, sisters, friends, etc. These different preferences can sometimes lead to heated debates and even disunity in relationships.

Let’s continue the analysis. There are two phenomena that are not found in most developed economies, which are also democracies.

Newspapers such as Le Figaro, The Washington Post or The Times do not contain a series of unilateral announcements that celebrate the birthday of some leaders, highlighting the prime minister’s speeches through advertising, or praising the appointment of a political leader for a Government post or government agency.

Everywhere in the city there are no ceremonial boards or doors because they are visited by a public official of a political party. There are no billboards or billboards on street corners and on public streets that contain portraits of politicians celebrating something that has something to do with them. So are dictatorships.

In a democracy, the citizen is the highest, the political system is multiparty, the voter decides who governs us and the constitution dictates how we should be governed.

Party leaders do not count individually at all and even a person as powerful as Margaret Thatcher would have laughed outside the court if, for example, she had visited Liverpool at the height of her power and her party had tried to plant the city with their Pictures.

The media, party workers, bureaucrats, political parties themselves and, unfortunately, citizens in general are to blame for this miasma that has invaded our society and our politics. We must ask why this happened and we must eradicate this barrier of toadyism, stock and barrel.

Newspaper ads in favor of our politicians cost a lot of money, and a full-page ad in a national newspaper can be two crowns of rupees. Where does the money come from?

Apart from waste, there is also the case of corruption associated with such expenses, which is ultimately paid by the common man. Why don’t we ask for the immediate end of this practice?

The accusations do not refer to a dark history of illegal funds that are channeled through a confusing maze of transactions in Mauritius, an island in the West Indies, anonymous banks in Switzerland or Luxembourg. They relate to property, plants and equipment, cash payments, credit balances and jewelry in Nepal.

The accusations are false in which the case must be closed or they are correct, there is a prima facie case and the matter must be appealed in a competent court.

It is well known that CBI is incompetent in professional life, that its officers are not above corruption and that it is extremely selective, depending on what the government wants to do in the prosecution of crimes. The Supreme Court boldly declares that it will relieve the CBI from political control.

In relation to the registration of the FIR, the investigation of a criminal offense, the arrest of the accused, the collection of evidence, the determination of whether or not there is a prima facie case against the accused or the accused, and the decision to bring to the accused before the courts or submit a final report in court To obtain permission to close the case, the police have full legal autonomy without restrictions.

However, even a senior police officer cannot order the investigator to exclude a person against whom there is prima facie evidence from their investigation, or a person against whom there is no evidence of prima facie evidence, Challan, to include in the accusation a case, where there is no evidence that a crime exists, or provide a final report at the end if there is sufficient evidence for an accusation.

No one, minister, officer or senior police officer can condemn an ​​investigator to postpone an investigation or conduct a false investigation. This provision already exists under current law.

While the law does not explicitly state that a minister of justice or a government official should not participate in the investigations, there are a number of decisions of the Private Council, our Superior Courts and the Supreme Court that clarify enough.

What other autonomy does the Supreme Court intend to grant to CBI? The greatest respect to our courts for my submission to them will be to use their judiciary to allow officials, including police officers, to operate in accordance with the law instead of making statements on how to relieve officials or organizations from government control.,

I think the executive should also be asked a question as to why she has renounced her executive functions. Despite the conviction of some police officers, the police are part of the executive branch of government, whose existence is governed by laws approved by law, whose powers and functions are prescribed by those laws, and whose responsibility and subordination are regulated by law.

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Let me give you an example. The Supreme Court insists that the police should not work under government control. Police supervision falls to the government and must continue to do so.

The supervisory authority does not mean that the police conduct micromanagement, but that the police framework, the objectives of the police and the general policy regarding police methods are defined and prescribed by the government through rules, regulations and norms.

Manuals and permanent orders. Finally, the Minister responsible for Home Affairs is accountable to the legislator for the way the police work, and neither the Supreme Court nor any other authority can dilute this responsibility of the ministers.

Assuming that the police exceed their powers, abuse their powers, harass citizens, deal with excessive law and order, do not act against crime because they are corrupt or incompetent, and ask questions of the legislator.

What we need is a balance between the authority of the executive branch and the role of the judiciary to ensure that all executives, including the police, operate in accordance with the law and that the police are operationally autonomous to fulfill their task of maintaining the order. , Crime prevention and rapid detection and prosecution of criminals.

This requires moderation, rational thinking, adequate legislation, competent executive and judicial oversight, which is not evident in the current environment in which the surcharges are involved.

The question that people have to ask is: “Why is that?” Good governance is a function of balancing the executive, legislative and judicial power. It is also a function of integrity, honesty in the methods of work, efficiency and competence of the constituents of the state.

I consider that the role of the legislator and the legislator is crucial, since it is this body and these people who, composed of the free vote of citizens, are the key elements of a representative democracy.

Legislators have a constitutional mandate, which consists of passing laws that are in the public interest, approving the annual budget and individual expenditure items, and granting subsidies to cover those expenses, and then supervising the government to ensure that it works in a country-based manner. that the means given by the will of the people, expressed by the representatives of the people, are used correctly.

This is done through questions, resolutions, debates, calls for proposals, requests for postponement and the operation of the Public Accounts Committee, the Estimates Committee and the various standing committees of various departments, all of which hold the government accountable.

At each step, the executive is accountable to the legislature, and if the legislature did its duty, the end result would be good governance. However, the fact is that legislators are not doing their duty, that most parliamentary sessions are severely interrupted, that the debate in state legislatures or in parliament is not very significant, and that most legislators they are more interested in assuming managerial functions or joining together.

Parliament is interfering with the executive’s daily work by demanding reservations and transfers, insisting that work be done at will and ideas, and that the bureaucracy serves as a means to win money instead of dealing with legislative matters.

Shouldn’t a question be asked why legislators do not exercise their legitimate function and instead make it impossible for bureaucracy to work? Shouldn’t we ask why the bureaucracy has become so accustomed to this situation that it is now a willing partner, which ultimately leads to large-scale corruption?

We need a massive increase in public anger that demolishes the posters of our leaders, pursues them when they say nonsense in public and insists on a strict way of life and the work of politicians and public officials.

Misuse of government funds also involves many risks in local government.

Disadvantages of misuse of state funds

Some of the main disadvantages of misuse of state funds are:

  1. A single government may lack infrastructure.

Although it is possible for a single government to make decisions quickly, the structure needed to implement the decisions made may be lacking. If communities do not have enough on-site support in an emergency, this centralized administration can leave the solution to local decision makers instead of intervening.

Since this delegation may not have the power to make the necessary changes to protect people, the lack of an independent local government can sometimes do more harm than good. The advantage of a local, regional and governmental government is that it can focus on local needs without interfering at the national level.

The federal government in the United States is concerned with the defense, management of transportation networks and the provision of resources for those without socio-economic access.

Local governments can then focus on their microeconomics, developing solutions to the needs of their communities while supporting the national government in their efforts.

Since unity government operates through a centralized structure, it is not uncommon for it to not meet local needs. It may happen that some communities are completely ignored because international situations have priority over applications for crop subsidies or other internal problems.

  1. This governance structure can promote abuse of power.

The uniform form of government will generally place a legislature or an individual in the final place of power. These people or government agencies have almost any responsibility in making decisions after taking office. If we take a look at the stories in the story, the pages quickly show that power, if only a few or only one has it, is too easily abused.

This inconvenience is the exact reason why the United States founded a federal state. Instead of having a centralized form of power, there is a complete system of reviews and compensation that ensures greater equality in the government process.

  1. Manipulation can be quite easy in a single government.

Although a unified government can improve efficiency due to a lack of bureaucracy, the structure also allows people in the government to manipulate the system.

When someone in power decides to seek more wealth or determine opportunities for himself, there are very few ways to stop this activity. When creating a system that provides the opportunity to manipulate the system for personal needs, the majority of the population must pay for the increase in power and wealth that a person receives.

  1. It is a governmental structure that first protects the central body.

Since the goal of a government is self-preservation, the various “weapons” used at the local level are usually the first that are cut in budgetary matters. The needs at the national level will always exceed the local needs of this government.

budget briefcase of Nepal
budget, Nepal

In other words, the decisions they make are usually based initially on their own survival, rather than taking into account the interests of the affected population. In severe circumstances, it may even result in local communities no longer having the resources they need, although they are expected to support the government they do not support.

  1. Many unity governments do not allow ranges of autonomy.

If there is a unified government that does not grant areas that control a degree of autonomy, subnational regions should never legislate their own laws. Examples of this form of government are currently in Norway, Ireland and Romania.

Even if the government allows the presence of subnational governments in this structure, there is no separation of powers. Your right to exist is open to the entire government, and the authority of these departments may change at any time.

  1. The purpose of unity government is for the few to control the many.

People are as patriotic in a unified government system as they are in a federal system. The disadvantage of the centralized state is that there are fewer opportunities to participate in the legislative process.

People rarely have the opportunity to interact with their government officials unless they have a specific need to comply, such as producing official identification materials.

If there is a change in policy that deprives selected groups of people of rights, the population may not be able to do anything to stop this process.

  1. Local emergencies can also result in a slower response at the national level.

The decision-making process of a unified government can be quick, but the design of its resources means that the response can be very slow. Any approval of assistance must be provided by the central government.

This means that there are times when there is more bureaucracy available to navigate than less, because a state can provide immediate assistance, such as the way a governor can send the National Guard to provide assistance.

  1. Unitary governments can inflate.

Whenever a government changes from a federated system to one, the benefits are often bright at first. It seems that everything moves faster. Then the snorting begins in the government.

As suddenly everything has to be for everyone, processes can slow down considerably. The bureaucracy is on the rise, since each permit requires a central official check. This may mean that things will be delayed further, even if everyone agrees that a change in the law is needed.

  1. This structure can artificially shape social discussions.

A single government can decide at its own discretion what is legal or illegal in society. If someone decides with sufficient power that their political opponents pose a threat, they can pass laws that will allow them to be jailed for what they have done.

The majority in this situation generally reigns at the expense of the minority and grants rights to people only if this fits their interests.

This process artificially influences social events by monitoring blogs, social networks and even personal conversations to see if something “harmful” is said to the government.

By Shishir Acharya


Jitendra Sahayogee

I am Jitendra Sahayogee, a writer of 12 Nepali literature books, film director of Maithili film & Nepali short movies, photographer, founder of the media house, designer of some websites and writer & editor of some blogs, has expert knowledge & experiences of Nepalese society, culture, tourist places, travels, business, literature, movies, festivals, celebrations.

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