Monday, June 1st, 2026

Govt revenue and spending plummet in wake of Gen-Z movement



KATHMANDU: More than six weeks after the Gen-Z movement shook the nation, several government bodies are still struggling to resume full operations, resulting in a noticeable slowdown in the country’s economic activities.

According to data published by the Ministry of Finance on Sunday, government revenue and capital expenditure during the first three and a half months of the current fiscal year have been significantly affected compared to the same period last year.

As per the Office of the Financial Comptroller General, the government collected only 18.43 percent of its targeted annual revenue as of mid-October, Rs 272.73 billion out of the Rs 1.48 trillion goal. Total revenue grew by a mere 0.32 percent year-on-year.

While customs duty, value-added tax (VAT), excise duty, and education service fees increased compared to last year, income tax revenue dropped by 9.02 percent and non-tax revenue plunged by 48.48 percent.

Capital spending remains weak. As of mid-October, the government had spent only 5.01 percent of its allocated capital budget, compared to 9.24 percent during the same period last year. Recurrent and financial management expenditures, however, reached 23.53 percent and 31.34 percent respectively.

Meanwhile, the number of individuals registered for Permanent Account Numbers (PAN) exceeded five million, reaching 5,046,466. Over 2,088,711 people have business PANs, and 36,368 have workplace PANs, according to the Ministry.

Publish Date : 03 November 2025 14:24 PM

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