Public debt rose by Rs 160 billion in first nine months of the current fiscal year

KATHMANDU: As of mid-April in the current fiscal year, the state treasury of Nepal had a negative cash balance of Rs 187 billion due to rising expenses and slow revenue collection.

According to the Financial Comptroller General Office’s (FCGO) records, the fiscal deficit for the first nine months of the current fiscal year increased by 133 billion compared to the same period last year. The federal government’s reserve fund was negative by Rs 54.74 billion as of the end of 2021/22.

Midway through the month of March, the negative balance increased by Rs 38 billion. .

The government received Rs. 809 billion during the review period while spending Rs. 943 billion. The government received 635 billion rupees in tax revenue, 11 point ninety four billion rupees in grants, 160 billion rupees in domestic and foreign borrowing, and two point fifty three billion rupees in principal and interest repayments.

Just under the category of recurrent expenses, the government spent Rs 706 billion. It demonstrates a Rs 71 billion deficit between the government’s ongoing expenses and receipts. .

The government spent all of its allocated funds for capital projects and financial management between mid-July and mid-April, totaling Rs 107 billion and Rs 129 billion, respectively.

The government spent more than four percent more during the review period compared to a 16 percent decline in revenue collection. .

The central government had access to Rs 986 billion out of the total revenue collected by the three governments, which totaled Rs 1.113 trillion.

According to the law, the government may borrow money from Nepal Rastra Bank in excess of 5% of its revenue collection. The federal government may request an overdraft of up to Rs 49.30 billion from the central bank based on the revenue collection it made during the review period this year.