Revenue collection 5% down in first two months of current FY

By A Staff Reporter,Kathmandu, Sept. 18: Revenue of around Rs. 157.53 billion has been collected during the first two months of the current fiscal year 2025/26.

According to the daily report of the Financial Comptroller General Office under the Ministry of Finance, revenue collection of the government stands at Rs. 157.53 billion which is 10.64 per cent of the annual target (Rs. 1,480 billion) by September 16, 2025 of the current fiscal year.

The revenue collection has decreased by 5 per cent (Rs. 8.85 billion) during the review period as compared to same period last fiscal year. 

The government had collected revenue of Rs. 166.38 billion (11.72 per cent) by mid-September 2024 of the last fiscal year.

Of the total revenue collection target of Rs. 1,480 billion, target has been set to collect Rs. 1,325 billion under tax revenue and Rs. 154 billion under non-tax revenue in the current fiscal year.

During the review period of the current fiscal year 2025/26, the government has received a grant amount of Rs. 1.27 billion. The government has set a target to receive Rs. 53.44 billion in grants in the current fiscal year.

Similarly, the government has obtained Rs. 1.17 billion under other receipts during the first two months of the current fiscal year.  During the review period, the total income of the government stood at Rs. 159.9 billion. This is almost 10.43 per cent of the annual receipts target of government. 

The government has estimated an annual income, including revenue and grants of Rs. 1,533.44 billion for the current fiscal year.

During the review period, the government has spent budget of around Rs. 180.17 billion. It is 9.17 per cent of the total budget of Rs. 1,964.11 billion for the current fiscal year.

During the first two months of the last fiscal year, the government had spent only 7.39 per cent (Rs. 137.55 billion) of the total budget allocation of Rs. 1,860 billion.

Of the total budget expenses, capital expenditure stood only at 1.56 per cent of total allocation during the first two months of the current fiscal year. Of the Rs. 407.8 billion allocated under capital expenditure, only Rs. 6.35 billion has been spent by September 16, 2025.  Even though the government aims to increase capital expenditure, the spending of capital expenditure is slightly lower as compared to same period last fiscal year. 

The capital expenditure is 2.67 percentage points lower during the review period as compared to same period last fiscal.  The capital expenditure was 4.23 per cent of total allocation in the first two months of the last fiscal year.  The recurrent expenditure of the government stood at 9.67 per cent (Rs. 114.18 billion) during the review period. 

The government has allocated Rs. 1,180.98 billion under the heading of recurrent expenditure for the current fiscal year. Likewise, the government has spent Rs. 59.62 billion under the heading of financing in the first two months of the current fiscal year. 

That is 15.89 per cent of the total allocation of Rs. 375.24 billion. The Gen-Z protests on September 8-9, which disrupted normal activities across the country, contributed to lower revenue collection and slower budget spending during the period.