Fiscal Nepal
First Business News Portal in English from Nepal
KATHMANDU: Nepal’s national economy is seeing a positive trend in its internal funding, according to the latest government revenue data covering the last three fiscal years. The figures show a consistent climb in total revenue, rising from NPR 1,010.65 Arab in FY 2022/23 to NPR 1,196.19 Arab in the current projections for FY 2024/25. This steady increase is a vital sign of recovery and stability for a country working to strengthen its financial independence.
The growth is primarily driven by Tax Revenue, which remains the backbone of the government’s wallet. In FY 2022/23, tax collection stood at NPR 865.63 Arab. This jumped to NPR 944.55 Arab the following year and is expected to cross the thousand-billion mark at NPR 1,049.88 Arab in FY 2024/25.
Similarly, Non-Tax Revenue—which includes fees, fines, and dividends from government entities—has shown healthy growth, moving from NPR 91.72 Arab to NPR 128.94 Arab over the same period. Interestingly, “Other Receipts” have seen a sharp decline, dropping from NPR 53.30 Arab to just NPR 17.37 Arab. This suggests the government is becoming more reliant on structured tax systems rather than miscellaneous or temporary income sources.
Revenue collection isn’t just a list of numbers; it is the fuel that keeps the country running. Here is why these growing figures are so important for Nepal’s future:
While the growth in tax revenue is encouraging, the challenge remains to expand the tax base fairly so that the burden doesn’t fall only on a few. The transition from “Other Receipts” to more stable tax and non-tax income is a sophisticated move toward a more predictable economy. As the government aims for nearly NPR 1,200 Arab in total revenue this year, the focus will likely stay on making tax collection simpler and more transparent for the general public.
A strong revenue system is more than just government income; it is a reflection of a hardworking population and a maturing state. If this trend continues, Nepal will be better positioned to meet its long-term goals of prosperity and self-reliance.
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