 budget reveals that 39% of the targeted income and 35% of the planned expenditures have been achieved.){kind=link}
The half-yearly review of Nepal’s fiscal year 2081/82 (2024/25) budget reveals that 39% of the targeted income and 35% of the planned expenditures have been achieved, according to the Office of the Comptroller General.
Key Highlights of the Budget Performance:
1. Overall Expenditures:
• Total government spending reached Rs 667.62 billion, which is 35.89% of the annual expenditure target of Rs 1,860.33 billion.
2. Income and Revenue Collection:
• The government collected Rs 574.77 billion in revenue by mid-January, achieving 39.06% of the annual target of Rs 1,471.63 billion.
• Tax Revenue: Rs 489.40 billion collected, representing 38.11% of the target.
• Non-Tax Revenue: Rs 70.28 billion collected, achieving 51.97% of the target.
• Foreign grants amounted to Rs 7.37 billion, only 14.09% of the targeted Rs 52.33 billion.
3. Capital Expenditures:
• Capital spending stood at Rs 56.94 billion, which is just 16.16% of the total capital allocation of Rs 352.35 billion.
4. Fiscal Management Expenditures:
• Spending under fiscal management amounted to Rs 158.66 billion, achieving 43.2% of the allocated Rs 367.28 billion.
5. Annual Targets and Achievements:
• The government aimed for an annual income and expenditure of Rs 1,860.33 billion for the fiscal year.
• Out of the allocated Rs 1,140.66 billion for expenditures, Rs 452 billion (or 39.63%) has been spent so far.
Key Observations:
• Revenue Progress: While non-tax revenue surpassed 50% of the target, tax revenue and foreign grants lagged behind expectations.
• Low Capital Spending: Capital expenditure remains significantly low at just 16.16%, raising concerns about the timely implementation of development projects.
• Foreign Grants Shortfall: With only 14% of foreign grant targets achieved, the government faces challenges in securing external funding.
Conclusion:
The mid-year performance indicates a modest income achievement but highlights low capital expenditure and foreign grant mobilization. Effective fiscal management and improved spending on development projects are critical to meeting annual budgetary goals.