Government Generates Rs. 5.18 Kharba in 6 Months, Achieves Rs. 93 Arba Revenue Collection in Just 9 Days

In the last nine days alone, revenue collection has reached a total of Rs. 93 Arba, according to the data from the Office of the Auditor General responsible for maintaining the details of government income and expenditure. From the 20th to the 29th of Poush, Rs. 93.31 Arba in revenue has been collected.

After a substantial increase of Rs. 93 Arba in just nine days, the revenue collection for the month of Poush stands at Rs.1.33 Kharba. Similarly, for the current fiscal year from Shrawan to Poush, revenue collection has reached a staggering Rs. 4.96 Kharba in just six months.

According to the data from the Office of the Auditor General, revenue collection in the month of Poush last year was Rs. 1.25 Kharba. In the entire fiscal year of six months, the revenue collection amounted to Rs. 4.58 Kharba.

Besides debt, the overall income has surpassed Rs. 5.18 Kharba. This includes Rs.18.89 Arba from other sources (such as past dues and fines) and Rs. 2.75 Arba in foreign aid. This marks a significant increase compared to the previous year's total income of Rs. 24 Arba.

The Revenue Management Division bases its monthly revenue collection on the fiscal month. It collects revenue in the form of a month's worth of taxes in each of the twelve months.

Concerns about the revenue situation prompted the Finance Minister to hold a meeting on Sunday with the heads of the Large Taxpayers' Office, the Secretary of the Ministry, and the Chief of the Revenue Division. When compared to the expenditure incurred in Poush, there seems to be no pressure on spending, and the government claims immediate revenue has not been withheld.

As of now, the government has only received Rs.10 Arba out of the approximately Rs.25 Arba in profits from the Nepal Rastra Bank.

While revenue has increased compared to the previous year, it falls significantly short of the government's target. The government had set a target of Rs.1.88 Kharba in revenue collection for the month of Poush alone. However, the actual revenue falls short by Rs. 50 Arba.

Similarly, the target for revenue collection from Shrawan to Poush, covering six months, was set at Rs. 6.68 Kharba. However, the actual revenue falls short by a staggering Rs. 1.72 Arba compared to the target.

In the current fiscal year, the government aimed to increase revenue by 40%. In the six-month period, a growth rate of 8.2% has been observed, primarily due to a decrease in indirect taxes.

According to sources in the Ministry of Finance, unexpected decreases in indirect taxes have contributed to a 3% reduction in revenue from such taxes compared to the previous year. The production decline has been attributed to industries such as alcohol, cigarettes, and chewing tobacco. After an unexpected decrease in indirect taxes, the Ministry of Finance conducted surveillance on such industries.

Moreover, other income under the category of unanticipated revenue has also decreased. Due to lower recoveries in past dues, the income under this category is now only Rs. 18.89 Arba. Additionally, foreign aid is also down by Rs. 85 Crores compared to the previous year.

In total, the income tax has increased by nearly 10%, and the value-added tax has risen by approximately 7%. In the last fiscal year, income tax collection amounted to Rs. 72.17 Arba, and the value-added tax (VAT) reached Rs. 29 Arba. The surge in revenue is attributed to increased revenue from excise duty, as highlighted by the Finance Minister.

The Large Taxpayers' Office has increased revenue collection by Rs. 11 Arba in just one Sunday, bringing the total revenue for the month of Poush to over Rs. 1.4 Arba.

The revenue collection in the first six months has shown an 18% growth rate on average, and the growth rate for income tax is over 24%, as stated by officials. The Large Taxpayers' Office manages the tax administration and has achieved an average growth rate of 18% in revenue in the first six months.

Up until the month of Poush, government expenditures, excluding loans, have exceeded income by Rs. 48 Arba. In the income of Rs. 5.18 Kharba, expenditures have reached Rs. 5.66 Kharba.

Within these expenditures, current expenses have reached Rs.4.37 Kharba, while capital expenditures stand at Rs.49 Arba, and financial management expenses amount to Rs.80 Arba.

In the last fiscal year, expenditures surpassed income by nearly Rs.82 Arba in the first six months. During the same period, income amounted to Rs.4.94 Kharba, while expenses reached Rs.5.76 Kharba.