Revenue Collection Fell Short Of the Budget Target

Revenue Collection Fell Short Of the Budget Target

Sept. 20, 2023, 8:20 a.m.

Revenue collection fell short of the budget target, despite improvement in the government's release of the capital budget this year compared to the previous two years.

Revenue collection fell short of the budget target, despite improvement in the government's release of the capital budget this year compared to the previous two years. Revenue collection fell short of the budget target, despite improvement in the government's release of the capital budget this year compared to the previous two years. In the last two months, collection has been significantly lower, with only 10 individuals recorded in August.

Revenue collection fell short of the budget target, despite improvement in the government's release of the capital budget this year compared to the previous two years. Unfortunately, there is little encouragement in these numbers.

In the first two months of Fiscal Year 2023/24 (mid-July to mid-September), development expenses have totaled Rs. 8.35 billion, representing 2.77% of the total capital allocated at Rs. 302 billion. These figures come from the statistics released by the Financial Comptroller General Office (FCGO), an agency that manages the government's treasury operations under the Ministry of Finance.

The current fiscal year's capital budget utilization shows an improvement compared to previous years. During the first two months of FY 2022/23, the government spent a mere 1.54 percent of the total allocation, which amounts to Rs. 5.86 billion out of Rs. 380.38 billion.

Similarly, in FY 2021/22, the country experienced an extremely poor capital budget performance, utilizing only Rs. 2.61 billion (0.69 percent of the total allocation of Rs. 378 billion) during the first two months of the fiscal year.

In the current financial year, the government was able to collect revenue totaling 1 trillion 41 billion rupees within two months. This amount represents only 9.92% of the total target and is less than the revenue collected during the same period last fiscal year. Finance Minister Dr. Prakasharan Mahat is beginning to feel the pressure after failing to meet revenue collection expectations.

The Comptroller General's Office reported tax revenue totaling 1.027 trillion crores while non-tax revenue amounted to 13 billion and 12 billion rupees. This revenue data suggests that goods import did not increase in August, a month when many items are imported for the festive season. However, August's revenue fell short of the previous month. This revenue data suggests that goods import did not increase in August, a month when many items are imported for the festive season. Specifically, revenues in August are 21% lower than July's revenue.

According to data from the Comptroller General's Office, revenue collections were 78.87 billion rupees in July, but only reached 62 billion rupees in August. Based on current collection trends, it is anticipated that the government will face resource management challenges this year.

The government's revenue collection target for this year is 14 trillion 22 billion 54 crore rupees, a 40 percent increase from the previous fiscal year. Last year marked the first time in 55 years that revenue growth rate saw a negative turn.

In August, the Internal Revenue Department collected 28% less revenue than the set target, only reaching 25.69 billion rupees out of a target of 35.05 billion rupees. Department officials attribute the underperformance to slow economic activity in the market.

Finance Minister Dr. Prakash Sharan Mahat has announced a budget of $17.51 trillion for this fiscal year, including $11.42 trillion for recurrent expenses and $3.07 trillion for financing management. Prakash Sharan Mahat has announced a budget of $17.51 trillion for this fiscal year, including $11.42 trillion for recurrent expenses and $3.07 trillion for financing management. Prakash Sharan Mahat has announced a budget of $17.51 trillion for this fiscal year, including $11.42 trillion for recurrent expenses and $3.07 trillion for financing management. The financing portion of the budget will go towards servicing government loans, with a small fraction potentially being utilized for investments.

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