Government Misses Revenue and Expenditure Targets for Fiscal Year 2023/24

The government fell short of its revenue collection and public expenditure targets for the fiscal year 2023/24, which concluded on Monday. According to records from the Financial Comptroller General Office, revenue collection reached only 74.29 percent of the target, while government expenditure stood at 80.44 percent of the allocated amounts.

For the fiscal year 2023/24, the government had allocated a total budget of Rs 1.751 trillion. However, by mid-July, only Rs 1.408 trillion was spent. Recurrent expenditures amounted to Rs 952 billion, or 83.41 percent of the Rs 1.141 trillion allocated. Development expenditures utilized Rs 191.7 billion, which is 63.47 percent of the Rs 302 billion earmarked for development projects.

Under financial management, expenditures totaled Rs 264.6 billion, reaching 86.07 percent of the allocated budget of Rs 307.4 billion.

The government collected Rs 1.058 trillion in revenue against a target of Rs 1.422 trillion, achieving 74.44 percent of the goal. Despite this shortfall, the collected revenue surpassed the previous fiscal year's total of Rs 944.55 billion.

The government had adjusted its revenue and expenditure estimates twice during the fiscal year. Following a mid-term budget review in February, outgoing Finance Minister Barsha Man Pun revised the estimates again on May 28, setting the new budget at Rs 1.530 trillion. The revised targets included Rs 1.067 trillion for recurrent expenditure, Rs 215 billion for capital expenditure, and Rs 247 billion for financial management. The revenue target was reset to Rs 1.253 trillion.

In terms of foreign grants, the government aimed to generate Rs 49.94 billion but only realized 22.48 percent of the target, amounting to Rs 11.22 billion.

Economist Keshab Acharya emphasized the need for the government to adopt realistic budgeting practices. "The government must analyze the actual economic status and expenditure needs rather than proposing inflated budgets each year," said Acharya. He further added that the budget should prioritize projects that contribute significantly to national needs.

Budget Realization vs. Targets:

Total Budget: 

Target: Rs 1,751 billion, Realization: Rs 1,408 billion 

Recurrent Expenditure:

Target: Rs 1,141 billion, Realization: Rs 952 billion

Capital Expenditure:

Target: Rs 302 billion, Realization: Rs 191.7 billion

Revenue Collection:

Target: Rs 1,422 trillion, Realization: Rs 1,058 trillion 

This fiscal year’s performance highlights the challenges faced by the government in meeting its financial objectives and underscores the need for more realistic and achievable budgeting strategies.