Government Fails to Meet Revenue Target with Fiscal Year about to End

  2 min 52 sec to read
Government Fails to Meet Revenue Target with Fiscal Year about to End

KATHMANDU: The government has consistently failed to achieve its revenue targets of late. The government failed to meet its revenue goals by the end of Jestha (mid-May to mid-June) in the current fiscal year, impacting the overall revenue target.

According to the Financial Comptroller General Office (FCGO), which monitors the government’s income and expenditure, the total income by the end of Jestha (mid-June) was Rs 942.23 billion. This amounts to only 63.99% of the annual target.

Initially, the government set a revenue target of Rs 1422 billion for the current fiscal year. However, during the half-yearly budget review, then Finance Minister Prakash Sharan Mahat reduced the target by 15% to Rs 1202.29 billion. Later, Finance Minister Barshman Pun revised the revenue collection estimate to Rs 1253.52 billion while announcing the budget for the next fiscal year on May 28.

With less than a month remaining in the current fiscal year, Rs 311.29 billion still needs to be raised to meet the revised target. A high-ranking official from the Ministry of Finance stated that it is unlikely to meet this target given the substantial daily revenue required.

The government's plan to boost revenue by reforming the tax system has also fallen short this year. The revenue growth rate was negative in the first two months of the current fiscal year (mid-July to mid-September). Although revenue collection in the subsequent nine months was positive, it only increased by an average of 6%.

Tax expert Chandramani Adhikari pointed out that the failure to meet the target is due to recurring issues. He emphasized that for the targets to be met, they should be realistic, and the problems within the tax system need to be addressed.

Finance Minister Pun acknowledged the gravity of the situation, stating that the government's inability to meet revenue targets is a serious problem. "You can deceive others, but not yourself. Questions arise when the fiscal year is about to end, and we must be prepared to answer," he told tax and revenue administration officials on Thursday. He also instructed subordinate agencies to encourage taxpayers to fulfill their obligations.


No comments yet. Be the first one to comment.