KATHMANDU, June 25: The government’s deposits with banks and financial institutions (BFIs) declined by 35.6 percent in the first 11 months of the current fiscal year.
According to Nepal Rastra Bank (NRB), the cash reserve of the government stood at Rs 166.26 billion as of mid-June this year. The amount includes the reserve amount held by all three tiers of the governments.
Revised interest rate corridor system introduced
The NRB records show that the cash reserve of the government as of mid-July 2022 was Rs 225.50 billion. Over the period, the amount declined by Rs 59.24 billion.
Likewise, the government’s surplus amount declined to Rs 2.07 billion. Till the last fiscal year end, the amount was Rs 11.07 billion.
This year, the government has been struggling to meet its target in revenue collection, which has put pressure on the government to manage adequate resources to fulfill its financial liabilities. The records with the Inland Revenue Department show that the revenue collection in the first 11 months of the current fiscal year was Rs 1.78 billion less than the amount in the same period last year.
