Despite revising the targets twice, the government failed to achieve revenue collection and expenditure targets

KATHMANDU, July 17: The government fell short of its target for both revenue collection and public expenditure in the fiscal year 2023/24, which ended on Monday. 

The records with the Financial Comptroller General Office show that revenue collection stood 74.29 percent of the target, while government expenses reached 80.44 percent of the earmarked amounts. For the last fiscal year, the government allocated a total budget of Rs 1.751 trillion, but by mid-July, only Rs 1.408 trillion was spent.

Specifically, expenditures under the recurrent heading amounted to Rs 952 billion, which is 83.41 percent of the allocated budget of Rs 1.141 trillion. Similarly, Rs 191.7 billion under the development budget was utilized, which made up 63.47 percent of the budget of Rs 302 billion allocated for development works.

Under the financial management heading, expenditures totaled Rs 264.6 billion, reaching 86.07 percent of the allocated budget of Rs 307.4 billion for the last fiscal year.

Likewise, the government collected revenue worth only Rs 1.058 trillion, out of the set target of Rs 1.422 trillion. The collected revenue was 74.44 percent of the target. The amount in the last FY was however bigger than the collected revenue of Rs 944.55 billion in the FY 2022/23.  

The government failed to meet the goal even after amending the revenue and expenditure estimates twice. Apart from the mid-term review of the budget in February, outgoing Finance Minister Barsha Man Pun on May 28 revised the estimates for the second time. Pun presented new estimates of the budget at Rs 1.530 trillion (87.4 percent of  actual amount). 

Through the second revision, the government had expected to spend Rs 1.067 trillion in current expenditure, Rs 215 billion in capital expenditure and Rs 247 billion in financial management. Similarly, the revenue collection target was reset at Rs 1.253 trillion.

To manage the source of financing its expenditure, the government aimed to generate Rs 49.94 billion in foreign grants. However, the actual realization was only 22.48 percent (Rs 11.22 billion) of the target. 

Economist Keshab Acharya said the government should build up practices to endorse realistic budgets. “The government must analyze actual economic status and the need of expenditure rather than just bringing in the inflated size of budget every year,” said Acharya, adding that the budget has to prioritize projects that contribute to the national needs.

Headings                 Targets         Realization

Total budget               Rs 1,751 billion    Rs 1,408 billion

Recurrent Expenditure       Rs 1,141 billion    Rs 952 billion

Capital Expenditure        Rs 302 billion    Rs 191.7 billion 

Revenue Collection        Rs 1,422 billion    Rs 1,058 trillion