Revenue collection on track despite COVID-9 pandemic

Published On: August 25, 2021 01:11 PM NPT By: Republica  | @RepublicaNepal

KATHMANDU, August 25: Despite the crisis created by the COVID-19 pandemic, the government has collected nearly Rs 100 billion in the first month of the current fiscal year. The government collected Rs 94 billion in the month of Shrawan (mid June to mid-July) alone. Compared to the last three years, the revenue collection this year seems to be higher.

According to the Financial Comptroller General Office (FCGO), the revenue collected by mid-July is 8.5 percent of this year’s target. The government has set a revenue collection target of Rs 1.151 trillion for the current fiscal year. In the last two years, the government's revenue was Rs 66 billion and Rs 58 billion, respectively, in the first month of the fiscal year.

The whole world’s economy is in trouble due to the COVID-19 pandemic. Nepal, too, is facing problems in various sectors. However, the government is set to meet the required target of the revenue collection. Looking at the collection of the first month of the current fiscal year, the government is very much likely to meet the target.

The FCGO informed Republica that a tax revenue of Rs 77 billion and a non-tax revenue of Rs 17 billion was collected in the first month of this fiscal year. This fiscal year, the government aims to collect Rs 138 billion and Rs 100 billion in tax and non-tax revenue, respectively. Compared to the government's target, tax revenue rose to 7.5 percent and non-tax revenue to 15.1 percent in the first month of the fiscal year. Though the government plans to receive Rs 63 billion in foreign grants this year, it did not receive any foreign grants in the first month of the current fiscal year.

Although the government has been able to meet the revenue collection target, it has not been able to increase the capital expenditure. According to FCGO, the government is in the same position as in the past in terms of capital expenditure. As of 17th August, only Rs. 940 million has been spent out of the total capital expenditure budget. 

Similarly, the government has not spent much on recurrent expenditure, either. The government has spent only Rs 10 billion out of the total current expenditure. This is only one percent of the government's estimate of current expenditure. This fiscal year 2021/22, the government has estimated a current expenditure of Rs 1 trillion. In case of financial management, the government has set a target of spending Rs 100 billion this fiscal year. However, a total of Rs 5 billion has been spent in the first month. This is only 2.4 percent of the target.

The given data of the FCGO shows that despite the time of crisis, the government has done well in terms of collecting revenue. Also, the government seems to have adopted austerity measures in terms of current expenditure as well.  


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