Revenue collection reaches just 78% as fiscal year nears close

Kathmandu, July 13: With only four days remaining before the current fiscal year comes to an end, the government faces a significant shortfall in revenue collection, having achieved just 78 per cent of its annual target as of July 11, 2025.

According to the daily report of the Financial Comptroller General Office under the Ministry of Finance, the revenue collection of the government stands at Rs. 1,105.77 billion which is 77.91 per cent of the initial annual target (Rs. 1,419.3 billion) during the review period. 

The government needs to collect about Rs. 313 billion to meet the annual target in the remaining four days of the current fiscal year. The fiscal year will end on July 16, 2025.

As per the revenue collection ratio, it is almost impossible to achieve the target of revenue collection this year too. In the last fiscal year 2023/24, the government succeeded to collect only 72 per cent of its annual revenue target. 

Revenue of Rs. 1,030.3 billion had been collected out of the target of Rs. 1,422.54 billion during the last fiscal year.

In the current fiscal year, out of the total revenue collected Rs. 1,105.77 billion, tax revenue stood at Rs. 1,001.5 billion or 77.99 per cent of the target and non-tax revenue stood at Rs. 104.2 billion or 77.17 per cent of the annual target.

Of the total revenue collection target of Rs 1,419.3 billion, Rs. 1,284.2 billion under tax revenue and Rs. 135.09 billion under the non-tax revenue have been set for the current fiscal year.

During the review period of the current fiscal year, only Rs. 22 billion grant was received by the government. It is 42.19 per cent of the annual target of the government. 

The government has set an annual target of Rs. 52.32 billion grant to be received for the current fiscal year. 

However, the government has received Rs. 12.03 billion under other receipts so far of the current fiscal year.

The revenue collection has increased by 10 per cent during the review period as compared to same period last year. 

The government had collected revenue of Rs. 1,003.5 billion by July 10, 2024 of last fiscal year 2023/24.

The government has spent only 81 per cent (1,506.64 billion) budget as of July 11 in the current fiscal year of the total budget of Rs. 1,860.3 billion for the current fiscal year.

Of the total budget expenses, capital expenditure stands only at 59.59 per cent of total allocation so far of the current fiscal year. Of the Rs. 352.35 billion allocated under capital expenditure, only Rs. 209.95 billion has been spent by July 11, 2025.

The recurrent expenditure of the government stood at 85.81 per cent (Rs. 978.79 billion) during the review period. The government has allocated Rs. 1,140.66 billion under the heading of recurrent expenditure for the current fiscal year.

Likewise, the government has spent Rs. 317.9 billion under the heading of financing during the review period. That is 86.56 per cent of the total allocation of Rs. 367.28 billion. 

While reviewing the budget in mid-year in February, the Ministry of Finance had reduced the size of budget for the current fiscal year by about Rs. 168 billion to Rs. 1,692.73 billion. 

By the end of the current year, the revised estimate is that the government is to spend Rs. 1,475 billion from its sources (revenue and internal debt), Rs. 36.62 billion from foreign grants, and Rs. 180.83 billion from foreign loans.