KATHMANDU: Both the government’s income and expenditure have remained weak as of January in the current fiscal year 2024/25.
According to data from the Comptroller General’s Office, the government’s income has reached only 44.83 percent of the annual target, while expenditure stands at 40.58 percent of the total budgeted amount.
The government had initially planned a budget of Rs 1.860 trillion for the fiscal year, setting a revenue collection target of Rs 1.471 trillion. However, due to the slower pace of both income and expenditure, the government has revised its estimate, planning to spend only 90.99 percent of the original allocation, which amounts to Rs 1.692 trillion.
As of January, the government’s current expenditure is at 45.82 percent of the initial allocation. Out of the Rs 1.140 trillion allocated under the current expenditure heading, Rs 522 billion has been spent in seven months. Meanwhile, capital expenditure remains sluggish, with only Rs 68.41 billion spent out of the allocated Rs 352.35 billion—just 19.42 percent of the total budget for capital projects.
Similarly, under the financial arrangement heading, which covers debt repayment and interest payments, the government has spent 44.6 percent of the allocated Rs 367.28 billion.
The revenue collection remains weak, falling short of expectations. Out of the annual revenue target of Rs 1.471 trillion, the government has managed to collect only Rs 659.73 billion by January, which accounts for 44.83 percent of the target.
Tax revenue collection stands at 44.05 percent, with Rs 565.64 billion collected so far against the annual target of Rs 1.284 trillion. Non-tax revenue, however, has performed slightly better, reaching 57.15 percent of the target, with Rs 77.21 billion collected against an annual goal of Rs 135.93 billion.
Foreign grants have been significantly lower than expected. The government had aimed to receive Rs 52.32 billion in foreign grants for the fiscal year, but only Rs 8.82 billion has been collected so far, which is just 16.87 percent of the annual target.
With both revenue collection and expenditure falling behind targets, concerns over fiscal management and economic growth continue to grow. The revised budget estimates indicate that the government may need to reassess its financial strategies to meet its economic goals for the fiscal year.
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