Kathmandu— The US Department of State released its 2026 Fiscal Transparency Report on Tuesday, revealing that 73 out of the 139 governments and one entity evaluated fulfilled the minimum fiscal transparency criteria. While a majority fell short of these standards, 14 of those 67 demonstrated significant improvement in their efforts to meet them. The report is intended to bolster market confidence, support global economic stability, and ensure responsible use of US foreign assistance funds.

Report's Core Findings

The Fiscal Transparency Report assessed the public availability, completeness, and reliability of budget documents from various governments. Evaluations also encompassed the transparency surrounding government contract awards, licensing processes, and public procurement contracts. According to the Department of State, this annual review is mandated by Congress to oversee the appropriate allocation of US taxpayer funds directed towards foreign assistance.

Economic Benefits Highlighted

The report emphasizes that fiscal transparency plays a crucial role in fostering favorable business conditions for American companies operating internationally. By enhancing public financial management, it aims to mitigate corruption risks and unfair practices within global markets. The Department stated the report also promotes stronger industry standards, reduces the risk of financial crimes, and requires disclosure of debt data to counter predatory lending.

Report's Scope and Methodology

The 2026 Fiscal Transparency Report builds upon previous assessments, primarily focusing on governments initially identified as recipients of US assistance in the 2014 report. The evaluation criteria center around key aspects of public financial management, including budget documentation and procurement processes.

The Department of State will continue to monitor fiscal transparency among assessed governments and entities, with future reports expected to track progress and identify areas for improvement.

(With inputs from ANI)

Originally published on abcnews.com.np.