KATHMANDU, Oct 17: The government’s revenue collection in the first quarter of the current fiscal year stands at just 17.49 percent of its annual target of Rs 1.419 trillion.
The records with the Financial Comptroller General Office (FCGO) show that the revenue collection stood at Rs 248.26 billion during mid-July and mid-October this year. Of the amount, Rs 219.68 billion was collected under tax revenue, Rs 28.57 billion was collected under non-tax revenue, while Rs 4.75 billion was obtained under ‘other receipts.’
Although the collected revenue in the review period this year posted a dismal figure, the amount was way higher compared to the amount collected in the same period last year. According to the FCGO, the government had collected only Rs 213.39 billion or 15.93 percent of the annual target in the first quarter of FY 2023/24.
Diversifying Government Revenue
Despite the government reiterating its commitment to increase its revenue collection by a notable amount, the first quarterly report has posted a dismal picture. The nominal increase in the revenue collection has been attributed to the government's increased initiative for revenue collection along with an increase in the economic activities of late.
The records with the central bank show that the private sector lending by banks and financial institutions increased only by 1.4 percent to Rs 73.39 billion in the first two months of the current FY. This shows that the private sector is still hesitating to inject investment in the domestic market, according to analysts.
Compared to the slow revenue collection, the public expenditure rose to Rs 329.20 billion (17.7 percent of the annual target) during the review period. The expenditure was Rs 49.2 billion more than the amount that the government spent in the corresponding period last year.
Of the total public expenditure, Rs 229.85 billion was utilized under recurrent expenditure. During this period, the government spent only Rs 29.37 billion (8.34 percent) in development projects compared to the whopping amount of Rs 69.97 billion utilized for debt servicing.
The capital expenditure however increased nominally in the review period this year compared to the same period last year. In the first quarter last FY, the capital expenditure stood at Rs 17.83 billion, which was 5.9 percent of the annual target.
