Govt relieved by an increased revenue collection under customs duty and internal taxation

Published On: December 18, 2023 09:30 AM NPT By: Republica | @RepublicaNepal

Financial resource still falls short of Rs 69.07 billion due to a whooping rise in recurrent expenditure in the first five months of FY 2023/24

KATHMANDU, Dec 18: The government fell short of Rs 69.07 billion in managing its expenditure compared to the total receipts in the first five months of the current fiscal year.

The records with the Financial Comptroller General Office (FCGO) show that the government made the total receipts of Rs 383.92 billion during mid-August and mid-November. This included the revenue collection worth Rs 363.42 billion and grants worth Rs 2.75 billion.

On the other hand, the government spent Rs 452.99 billion during the review period. Of the amount, 79.46 percent (Rs 359.99 billion) was spent alone under the heading of recurrent expenditure.

The collection of tax revenue stood at 25.83 percent of the targeted amount of Rs 1.305 trillion. Out of the tax revenue, collection of customs duty and internal taxation showed impressive growth last month.

According to the Inland Revenue Department (IRD), it collected revenue worth Rs Rs 44.02 billion in the past one month. The collected sum was 18.62 percent more than the targeted amount of Rs 37.11 billion during mid-November and mid-December.

The IRD witnessed a whopping growth in revenue collection mainly with the banks settling their taxes dues under the premium of further public offerings, mergers and acquisitions and sale of auction shares. After the government tightened the noose making banks and financial institutions to clear their taxes dues, it collected Rs 12.8 billion in revenue just on Friday and Saturday, the last two days of the month end.

Likewise, the Department of Customs (DoC) collected revenue worth Rs 157 billion as of mid-December of the current fiscal year. The amount was Rs 9 billion in excess to the revenue collection during the review period last year.

Despite an improvement in revenue collection by the DoC, revenue collection was still 33 percent less compared to the targeted amount. The department aimed to generate revenue of Rs 251.72 billion for the government in the first five months.

The capital expenditure appeared pathetic this year too. In the review period, the government spent 11.94 percent of the allocated amount of Rs 302.07 billion for the development projects.