KATHMANDU: The government failed to meet both its revenue and expenditure targets in the fiscal year 2024/25, according to data released by the Office of the Financial Comptroller General (OFCG).
The government’s revenue collection reached only 82 percent of the annual target, while expenditure stood at just under 82 percent of the budgeted amount.
For the fiscal year, the government had announced a budget of NPR 1.86 trillion. However, by the end of Ashar (mid-July), total spending stood at Rs 1.523 trillion, which is 81.87 percent of the planned expenditure.
Among the major headings, current expenditure reached 85.95 percent of the allocated Rs 1.14 trillion, amounting to Rs 980.28 billion. In contrast, capital expenditure continued to underperform. Of the allocated Rs 352.35 billion, only 63.2 percent (Rs 226.82 billion) was spent.
Spending under financial management was relatively higher at 87.14 percent, with Rs 320.04 billion spent out of the allocated Rs 367.28 billion.
On the revenue side, the government collected just Rs 1.197 trillion, which is 82.88 percent of the targeted Rs 1.471 trillion. As a result, the expenditure exceeded revenue by more than Rs 303.38 billion, contributing to a widened fiscal deficit.
Tax revenue stood at Rs 1.049 trillion, which is 81.75 percent of the target. Non-tax revenue fared better, with 95.45 percent realization, amounting to Rs 128.94 billion.
However, foreign grant mobilization was dismally low. Against a target of Rs 52.32 billion in foreign grants, only Rs 23.52 billion was received, just 44.97 percent of the goal.
The government had revised its revenue and expenditure targets twice, first during the mid-term review in Magh (January/February) and again while presenting the FY 2025/26 budget in Jestha (May/June).
Despite these downward revisions, the actual figures failed to meet even the lowered expectations.
The revised estimate in Jestha had projected 89.4 percent execution of the original annual budget, which would amount to Rs 1.662 trillion in spending. But actual expenditure fell short by approximately Rs 140 billion.
According to the government’s second revision, current expenditure was projected at 88.5 percent, capital expenditure at 84.4 percent, and financial management at 97.6 percent of the initial allocation. Revenue was expected to reach Rs 1.267 trillion, another goal that was missed.
Comment