Capital Expenditure at 11%, Revenue Collection at 28% in Five Months

The government’s fiscal performance in the first five months of the current fiscal year 2024/25 remains underwhelming, with both income and expenditure lagging behind targets. According to the Office of the Comptroller General, as of December 15, the government has collected only 28% of its annual revenue target while spending around 30% of the total budget.

Out of the allocated NPR 352.35 billion under the capital expenditure heading, only NPR 40.8 billion (11.58%) has been utilized so far. The slow pace of development spending continues to be a concern for meeting infrastructure and development goals.

In the current expenditure category, 31.87% of the allocated NPR 1140.66 billion has been spent, amounting to NPR 363.55 billion. This expenditure includes operational costs and other government services.

The fiscal management heading, primarily used for servicing public debt, has seen a spending of NPR 151.76 billion (41.32%) from the allocated NPR 367.28 billion.

The government has collected NPR 405.77 billion in revenue so far, just 27.57% of the targeted NPR 1471.63 billion for the fiscal year. This underscores challenges in meeting the annual revenue target amid slowing economic activity and administrative inefficiencies.

The government had set a target to secure NPR 52.33 billion in foreign grants this fiscal year. However, no foreign grant has been utilized as of mid-December.

The current figures highlight the need for improved fiscal discipline and efficient resource mobilization to meet annual development goals and reduce reliance on public debt.