KATHMANDU: The government fell short of its targets for both revenue collection and public expenditure in the fiscal year 2023/24, which concluded on Monday. According to records from the Financial Comptroller General Office, revenue collection reached only 74.29 percent of the target, while government expenses amounted to 80.44 percent of the allocated budget.
For the last fiscal year, the government had earmarked a total budget of Rs 1.751 trillion. However, by mid-July, only Rs 1.408 trillion was spent.
Breakdown of Expenditures
-Recurrent Expenditures: Rs 952 billion (83.41 percent of the allocated Rs 1.141 trillion)
-Development Budget: Rs 191.7 billion (63.47 percent of the allocated Rs 302 billion)
– Financial Management: Rs 264.6 billion (86.07 percent of the allocated Rs 307.4 billion)
Revenue Collection
The government collected Rs 1.058 trillion in revenue, achieving only 74.44 percent of the targeted Rs 1.422 trillion. Despite missing the target, the collected revenue was higher than the Rs 944.55 billion collected in the previous fiscal year (FY 2022/23).
Revised Estimates and Shortfalls
The government had revised the revenue and expenditure estimates twice during the fiscal year. After the mid-term budget review in February, outgoing Finance Minister Barsha Man Pun presented revised estimates on May 28, setting the new budget at Rs 1.530 trillion, which was 87.4 percent of the original amount.
The revised expectations were:
– Current Expenditure: Rs 1.067 trillion
– Capital Expenditure: Rs 215 billion
– Financial Management: Rs 247 billion
– Revenue Collection: Rs 1.253 trillion
Foreign Grants
The government aimed to generate Rs 49.94 billion in foreign grants but only realized 22.48 percent (Rs 11.22 billion) of this target.
Expert Opinion
Economist Keshab Acharya emphasized the need for the government to adopt more realistic budgeting practices. “The government must analyze the actual economic status and the need for expenditure rather than just bringing in an inflated budget every year,” Acharya said. He added that the budget should prioritize projects that contribute to national needs.
The shortfall in meeting revenue and expenditure targets highlights the challenges facing the government in effectively managing fiscal policies and the need for more accurate forecasting and prioritization of essential projects.