Fiscal Nepal
First Business News Portal in English from Nepal
KATHMANDU: With one month left in fiscal year 2081/82, Nepal’s government has collected NPR 1.027 trillion in revenue, supplemented by non-tax sources and foreign grants, totaling NPR 1.044 trillion in income. However, this represents only 70% of the annual target, signaling a significant shortfall, according to the Ministry of Finance.
Government expenditure during the same 11-month period reached NPR 1.283 trillion, exceeding income by NPR 239 billion, plunging the treasury into a fiscal deficit. Revenue collection rose by NPR 88 billion compared to last year’s NPR 939 billion for the same period, achieving 83.22% of the NPR 1.234 trillion target set for May 2025. In May alone, NPR 94.02 billion was collected, up from NPR 85.11 billion last year.
Capital expenditure remains critically low, with only NPR 143 billion (40%) of the NPR 352 billion development budget spent by May. In contrast, recurrent expenditure hit NPR 851 billion, or 74% of the NPR 1.14 trillion target. The sluggish capital spending highlights delays in infrastructure projects, while high recurrent costs reflect administrative and debt servicing priorities.
Nepal’s debt burden stands at over NPR 26 trillion, with NPR 12.66 trillion in domestic loans and NPR 13.55 trillion in external loans by April 2025. An additional NPR 390 billion was borrowed this fiscal year, including NPR 301 billion domestically and NPR 89 billion externally, per the Public Debt Management Office.
The widening fiscal gap and low capital expenditure raise concerns about economic growth prospects, prompting calls for improved budget execution and revenue strategies as the fiscal year concludes.
Your email address will not be published. Required fields are marked *
Comment *
Name *
Email *
Website
Save my name, email, and website in this browser for the next time I comment.
