Sunday, 28 May, 2023

Revenue collection encouraging despite low capital expenditure


By A Staff Reporter
Kathmandu, Jan.19: The situation of revenue collection of the government is encouraging despite the low capital expenditure for the last three years.
Looking at the half-yearly figures of the overall revenue and expenditure of the government for the last three years, there is a positive trend towards revenue collection.
The overall expenditure for the same period has fluctuated.

The government has collected 45.91 per cent of the targeted annual revenue during the first six months of the current fiscal year (till mid-January 2022) 2021/22. This is 4.18 per cent more than the corresponding period of the previous year.

According to the Ministry of Finance, the government has collected Rs. 542 billion as against the target of Rs.1180 billion by the end of the current fiscal year.
Earlier, the revenue collection till mid-January of FY 2020/21 was 41.73 per cent of the total annual target and till mid-January of the previous fiscal year 2019/20, the revenue collection was 38.95 per cent of the total target.

Regarding the half-yearly expenditure, the situation of the last three fiscal years has been average.
As of mid-January of the current fiscal year 2021/22, capital expenditure has been 13.44 per cent.

This is 0.96 per cent less than the corresponding period of the previous fiscal year. By mid-January of 2020/21, capital expenditure was 14.40 per cent and in the corresponding period of the previous year 2019/20, it was 14.89 per cent.

Due to the need to bring a replacement budget, the budget was implemented only after mid-September, the capital expenditure could not be as expected, said the Ministry.
There were some fluctuations in recurrent and financial expenditure during the review period.

Similarly, up to mid-January of the current Fiscal Year 2021/22, the current expenditure stood at 38.13 per cent and the financial expenditure at 26.12 per cent.
The financial expenditure has almost doubled compared to the previous year.

In the corresponding period of FY 2020/21, the current expenditure was at 36.08 per cent while the financial expenditure at 13.06 per cent.
By mid-January of FY 2019/20, recurrent expenditure was 32.35 percent and financial expenditure was 22.44 per cent.