Bagmati Province Falls Short of Revenue Target for Fiscal Year 2023/24

Bagmati Province has reported a significant shortfall in its revenue collection for the fiscal year 2023/24, collecting Rs 9.33 billion less than the projected target. According to the Ministry of Economic Affairs and Planning, the province aimed to collect Rs 48.25 billion from various sources, including revenue distribution, internal sources, and federal grants but managed to gather only Rs 39.22 billion.

Information Officer Suraj Poudel stated that the province had set a target of Rs 26.68 billion from revenue distribution but achieved only 81.85% of that goal, amounting to Rs 21.84 billion. However, the province nearly met its internal revenue target, collecting Rs 3.662 billion against the estimated Rs 3.755 billion, realizing 97.52% of the target.

The province also anticipated receiving Rs 17.812 billion in grants from the federal government but received only 77.01% of the expected amount, totaling Rs 13.717 billion.

This revenue shortfall follows a similar trend from the previous fiscal year 2022/23, where the province collected 17% less revenue than estimated. The government had targeted Rs 55.031 billion but only managed to collect Rs 45.088 billion. Despite this, the overall revenue collection, including last year's cash reserve, exceeded the target by 105.45%, reaching Rs 66.127 billion, according to Hari Prasad Upadhyay, Chief of the Bagmati Province Treasury and Comptroller's Office in Hetauda.

Upadhyay attributed the revenue decline to a decrease in VAT, income tax, natural resources mining tax, and land revenue, among other factors. Additionally, the federal government's cutbacks on some programs due to the economic recession contributed to the shortfall.