Government spends only 52% of annual budget in first nine months of FY 2023/24

KATHMANDU: In a report released by the Financial Comptroller General Office under the Ministry of Finance, it was revealed that the government has only spent approximately 52% of the targeted annual budget during the first nine months of the current fiscal year 2023/24.

As of April 12, 2024, the government expenditure amounted to Rs. 909.39 billion, which accounts for only 51.93% of the total annual budget allocation of Rs. 1,751.31 billion.

Compared to the same period in the previous fiscal year, the budget expenditure for the review period is slightly lower. During the corresponding period of the previous fiscal year 2022/23, the government had spent 52.57% of the annual budget.

Of the total budget expenses, capital expenditure constitutes only 32.24% of the total allocation in the first nine months of the current fiscal year. Out of the allocated Rs. 302 billion for capital expenditure, only Rs. 97.34 billion has been spent by April 12, 2024. However, the rate of capital expenditure is slightly higher compared to the same period last year, which stood at 28.19%.

Meanwhile, recurrent expenditure accounted for 56.41% (Rs. 644.02 billion) of the recurrent expenditure for the current fiscal year, out of the allocated budget of Rs. 1,141.78 billion. However, the rate of recurrent expenditure is lower during the review period compared to the same period last year, which stood at 59.73%.

Additionally, under the heading of financing, the government has spent Rs. 167.9 billion in nine months of the current fiscal year, which is 54.64% of the total allocation of Rs. 307.4 billion. This amount is generally used to pay the principal and interest of the public debt.

Furthermore, through a half-yearly review of the budget, the Ministry of Finance has released a revised estimate that only Rs. 1,530.26 billion will be spent in the current fiscal year, which is 87.38% of the initially allocated budget.

Revenue Collection Shows 10% Growth
During the review period, the government’s revenue collection in the first nine months stood at around 53% of the annual target. According to the Financial Comptroller General Office, the government’s revenue collection reached Rs. 748 billion, which is 52.58% of the annual target of Rs. 1,422.54 billion.

Tax revenue accounted for Rs. 671.11 billion or 51.41% of the target, while non-tax revenue stood at Rs. 76.92 billion or 65.71% of the annual target. The revenue collection has improved during the review period compared to the same period last fiscal year, recording a growth of 9.4%.

Revised Revenue Target
Due to the lack of revenue collection as per the target, a revised target of revenue collection of only Rs. 1,240 billion has been set for the current fiscal year. Additionally, the government has received a grant of only Rs. 2.75 billion during the review period, which is 5.52% of the annual target.

Fiscal Nepal |
Thursday April 18, 2024, 11:32:18 AM |

Leave a Reply

Your email address will not be published. Required fields are marked *