In the first two months of the fiscal year 2024/25, the Government of Nepal collected Rs 166.38 billion in revenue, reflecting a 7.8% increase from the Rs 154.24 billion collected during the same period last fiscal year. While this growth indicates an increase in economic activity, it remains below government expectations. So far, the revenue collected accounts for just 11.72% of the annual target of Rs 1.419 trillion, raising concerns that the government may once again fall short of its fiscal goals.
According to the Financial Comptroller General Office (FCGO), government expenditure saw a slight improvement, reaching Rs 137.55 billion, or 7.39% of the annual target. However, capital expenditure for development projects continues to lag behind. Despite hitting Rs 14.89 billion in the first two months, this only represents 4.23% of the Rs 352 billion target set for the fiscal year. By comparison, last year’s capital expenditure stood at Rs 8.17 billion during the same period.
Experts warn that the government’s inability to meet its revenue and capital expenditure targets, especially in development projects, hampers economic growth. Historically, a significant portion of the capital budget is spent in the final month of the fiscal year, leading to delays in infrastructure and development progress.