Govt. spending exceeds revenue by Rs 112 billion

KATHMANDU, MARCH 11:  The government spending has exceeded revenue collection by Rs 112 billion in the first seven months of the current fiscal.

According to the latest Economic and Financial Situation Report published by Nepal Rastra Bank,  Nepal’s total expenditure during the review period stood at Rs 754.85 billion. Of this, Rs 522.63 billion was spent on recurrent expenses, Rs 68.42 billion on capital expenditure, and Rs 163.81 billion on financial management.

On the other hand, the government's total revenue collection amounted to Rs 642.85 billion, including provincial and local government allocations.  Of the total, the tax revenue accounted for Rs 565.64 billion, while non-tax revenue stood at Rs 77.21 billion.

  However, despite higher expenditure compared to internal revenue, government accounts still hold approximately Rs 350.07 billion in reserves up to the Magh month (mid-January to mid-February). These reserves include funds held by all three tiers of government in Nepal Rastra Bank.

During the review period, the provincial governments spent Rs 51.90 billion, while total resource mobilization stood at Rs 101.89 billion. ​​​​​​​Out of the total, Rs 80.94 billion came from grants transferred by the federal government and revenue distributed from the divisible fund. Similarly,  the remaining  Rs 20.95 billion was generated through provincial tax collection and other sources.

According to the central bank, the broad money supply increased by more than 4 percent during the review period. During the same period last year, the growth rate was 7 percent. On an annual point-to-point basis, the broad money supply had risen by 10.1 percent by the end of Magh.