KATHMANDU, Oct 17: The government collected total revenue of Rs 172.36 billion, 17 percent of the targeted amount, in the first quarter of the current fiscal year that ended on Friday. The amount this year is close to the revenue collection in the review period of the last fiscal year.
The lull in economic activities as a result of the ongoing coronavirus pandemic was expected to take a heavy toll on the government revenue collection this year. The amount that the government earned during mid-July to mid-October this year is just Rs 18 billion less than the last year’s amount of Rs 190 billion, show the records of the Financial Comptroller General Office (FCGO).
Diversifying Government Revenue
Citing the possible impact of coronavirus, the government had reduced the target of revenue collection to Rs 1.01 trillion for 2020/21, down from Rs 1.11 trillion of the last fiscal year.
After ending a five months long lockdown on September 9, the government has asked the private sector to carry out business activities by strictly following the health safety protocols. But as the cases of coronavirus keep rising, the economic activities have failed to pace up as expected. As a result, more than 569,653 people have lost their jobs in the aftermath of the lockdown that was started on March 24.
However, the tax collection mainly during the first quarter-end has given some respite to the government which has been struggling to gather financial resources. In the past one week alone, the government collected taxes worth Rs 21 billion, according to the FCGO records.
Meanwhile, the government spent 4.26 percent (Rs 15 billion) of the capital expenditure earmarked for the first quarter. The expenses in this heading was 4.52 percent in the review period last year.
