HETAUDA: Bagmati Province fell short of its revenue target for the fiscal year 2023/24.
According to the Ministry of Economic Affairs and Planning of Bagmati Province, the revenue collection was Rs 9.33 billion less than the target.
The provincial government had projected collecting Rs 48.25 billion from various sources—including revenue distribution, internal sources, and federal grants—but actual revenue amounted to Rs 39.22 billion, as reported by Suraj Poudel, Information Officer of the Ministry.
The government set a target of Rs 26.68 billion for revenue distribution but achieved only 81.85 percent of this target, collecting Rs 21.84 billion.
Revenue from internal sources saw a higher success rate, with 97.52 percent of the target met.
The province collected Rs 3.662 billion against a target of Rs 3.755 billion.
Regarding federal grants, the province was expected to receive Rs 17.812 billion but received only 77.01 percent of this amount, totaling Rs 13.717 billion.
The revenue shortfall is a continuation of the trend observed in fiscal year 2022/23, when collections were 17 percent below the estimated target.
That year, the government aimed to collect Rs 55.031 billion but received only Rs 45.088 billion.
Hari Prasad Upadhyay, Chief of the Bagmati Province Treasury and Comptroller’s Office in Hetauda, noted that despite the shortfall, the province exceeded its collection target from various income sources, totaling Rs 66.127 billion against an estimated Rs 62.710 billion.
Upadhyay attributed the revenue shortfall to declines in VAT, income tax, natural resource mining tax, and land revenue, compounded by federal budget cuts and economic recession impacts.
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