FY2023/24 review: Revenue collection, expenditures fail to meet targets

KATHMANDU: The government's revenue and expenditure fell short of annual targets in the last fiscal year 2023/24. 

According to the Office of the Auditor General, revenue collection reached 74.29% of the total target, while budget expenditures amounted to 80.44%.

The government had allocated a total budget of Rs 1,751 billion. By mid-July (the end of fiscal year 2023-24), expenditures amounted to Rs 1,408 billion.

Specifically, expenditures under the current heading amounted to Rs 952 billion, which is 83.41% of the allocated budget of Rs 1,141 billion. Similarly, expenditures under the capital heading totalled Rs 1,917 billion, 63.47% of the allocated budget of Rs 3,020 billion.

Under the financial management heading, expenditures totalled Rs 2,646 billion, reaching 86.07% of the allocated budget of Rs 3,074 billion for the last fiscal year.

The government had set a revenue collection target of Rs 1,472 billion for the fiscal year, but actual collections amounted to Rs 1,093 billion, making up 74.29% of the target. The government collected Rs 944.55 million in revenue in the last fiscal year against its target of collecting Rs 1,305 billion. 

Towards non-tax, a target was set to collect Rs 117 billion in the last fiscal year, but only Rs 114 billion was collected. 

Similarly, the government received only 22.48% foreign grants (Rs 1,122 billion) against the target of receiving Rs 4,994 billion foreign grants.  

The government failed to meet the goal even after amending the income and expenditure estimate twice. It revised the income and expenditure estimate through half-yearly review for the first time and second time while bringing the budget of the last fiscal year.  

Revising the income and expenditure estimate for the second time on May 28, outgoing Finance Minister Barsha Man Pun presented the revised estimate of Rs 1,530 billion (87.4% of allocation). 

Of the total government expenditure, it was expected to spend Rs 1,067 billion towards current expenditure, Rs 215 billion towards capital expenditure and Rs 247 billion towards financial management. 

Similarly, the government had set the target of collecting revenues worth Rs 1,253 billion in the last fiscal year following the second revision. The government had reduced the estimates of revenue and expenditure making a half-yearly review of the budget for fiscal year 2023/24 for the first time in last February.

The government had brought a budget of over Rs 1,751.31 billion for the fiscal year 2023/24. The government had made a revised estimate of expenditure of over Rs 1,530.26 billion or 87.38% of the budget through the half-yearly evaluation of the budget. 

The estimates of expenditure towards the current heading were revised through the half-yearly review to 88.84%, towards capital heading to 84.13% and towards fiscal management heading to 87.39% compared to the initial allocations for the first time. 

The estimates of income and expenditure were decreased through the half-yearly budget review and were expected to be over Rs 1007.45 billion or 88.24% of the initial allocation towards the current heading, over Rs 254.13 billion or 84.13% of the initial allocation towards the capital heading and Rs 268.67 billion or 87.39% of the initial allocation towards fiscal management heading.

By RSS