KATHMANDU, Nov 18: The government missed its revenue collection target in the first four months of the current fiscal year, mobilizing only 76.79 percent of the amount projected for the period.
According to the Ministry of Finance (MoF), the government set a revenue collection target of Rs 425.23 billion between mid-July and mid-November. However, actual collection reached only Rs 326.55 billion, leaving a shortfall of Rs 98.68 billion.
Between mid-October and mid-November alone, the government collected Rs 78.33 billion against a target of Rs 103.70 billion, achieving only 75.49 percent of the monthly projection.
Govt collects Rs 62.97 billion in revenue in the 1st month of F...
Despite the shortfall, revenue collection in the first four months was Rs 3.31 billion higher than the same period last fiscal year, when the government collected Rs 323.24 billion.
The MoF noted weaker performance in both customs duty and inland revenue. Customs revenue reached only 76.96 percent of the target, with Rs 74.59 billion collected against the goal of Rs 96.92 billion. Inland revenue collection stood at 80.11 percent of the target, with Rs 152 billion raised out of the projected Rs 190 billion.
Capital expenditure remained low at Rs 25.31 billion—just 6.21 percent of the allocated Rs 407.88 billion. Overall government expenditure stood at 23.87 percent, with the government spending Rs 468.88 billion out of the earmarked Rs 1.964 trillion.
The sluggish revenue mobilization and rising recurrent expenditure has created a resource gap of Rs 135 billion. Economists warn that the widening fiscal deficit will further strain public debt.
The government spent Rs 122 billion on debt servicing—32.67 percent of the target—and has allocated Rs 375.24 billion for interest and principal repayment on public debt for the current fiscal year 2025/26, citing growing repayment obligations amid slow revenue growth.
