KATHMANDU: The Madhesh Province government collected 70 percent of its revenue target in the fiscal year 2025/26, according to the Ministry of Finance.
The province generated a total revenue of Rs 32.88 billion during the fiscal year, including Rs 5.76 billion in internal revenue, said Rajendra Acharya, statistics officer at the ministry.
Revenue from land registration amounted to Rs 1.77 billion, while Rs 2.27 billion was collected through vehicle taxes.
The province also earned Rs 795.6 million from driving licence issuance and vehicle registration fees, Rs 126.3 million from transport sector income, and Rs 201.5 million from the sale of riverbed materials such as sand, gravel and stones.
Under federal revenue sharing, Madhesh Province received Rs 8.86 billion in Value Added Tax (VAT) and Rs 3.20 billion in excise duty.
The province also received Rs 7.06 billion in fiscal equalization grants from the federal government, Rs 2.17 billion in conditional current grants, and Rs 1.56 billion in conditional capital grants, Acharya added.
According to Ministry of Finance Information Officer Ansh Kumar Jha, the province fell short of its revenue target due to reduced transactions in land and new vehicle purchases caused by liquidity constraints. He also cited damage to several revenue collection offices during the Jajani movement on Bhadra 23 and 24 as a factor affecting revenue collection.
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