KATHMANDU: The government has spent Rs 468.88 billion in the first four months of the current fiscal year, surpassing its revenue of Rs 333.34 billion by Rs 135.54 billion, according to the Office of the Comptroller General.
Revenue mobilization has remained low, with the government collecting only 21.72 percent of its annual target. Tax income reached 23.15 percent, non-tax revenue 12.73 percent, and grants 6.53 percent of the respective yearly goals.
While recurrent expenditure and financial management costs consumed the bulk of spending, capital expenditure remains critically low. Of the Rs 407.88 billion allocated for development projects, only Rs 25.31 billion—or 6.21 percent—has been spent so far.
The spending gap highlights challenges in fiscal management and the need for accelerated revenue collection and project implementation. Analysts warn that persistent overspending without increased income could widen the fiscal deficit and affect development priorities.
The government and Nepal Rastra Bank have released Rs 42 billion to support ongoing obligations, including salaries, debt servicing, and social programs, while calling for stricter financial discipline to control the growing fiscal imbalance.
Comment