As of January, the government spent only 19.42 percent of the target on capital expenditure, compared to 21.16 percent last year.
After the formation of the new government, there will be political stability in the country, so economic development will get priority, revenue collection and capital expenditure will increase, but the results are not satisfactory. According to the experts, looking at the revenue, capital expenditure, foreign aid and subsidy collected in the seven months of the current fiscal year (from July to January), the government has not been able to deliver the results as claimed.
For a long time, the external indicators of the economy, including foreign exchange reserves, current account, and current account, have been continuously strong . In such a situation, if the government expenditure and income can be improved, the economic activity will be sustainable, experts said. However, they argue that even though the government finances have improved compared to last year, it is not enough to keep the sluggish economy running.
From July to January of the current financial year, the government has collected 6 trillion 42 billion 85 crore rupees in revenue. This is 45.29 percent of the annual target. Revenue collection has increased by about 13 percent during the same period of this year compared to January of last year. However, the revenue collection till January is about 1 trillion 32 rupees less than the government's monthly revenue collection target.
The government had set a target of collecting revenue of 7 trillion 74 billion 80 million rupees by 7 months of this year. For the current financial year, the government has set a target of collecting 14 trillion 71 billion 62 billion 95 million revenue. The government's goal is to collect 1 trillion 20 billion 51 billion 61 million rupees in July, 92 billion 84 million 27 million rupees in August, 96 billion 56 million 92 million rupees in October, 96 billion 44 million rupees in October, 88 billion 65 million rupees in November, 1 trillion 77 billion 78 million rupees in January and 97 billion 63 million 81 million rupees in January. However, the revenue collected in all months is below the monthly target. Although the revenue collection is on the road to improvement, the Finance Ministry officials admit that the target has not been met.
They say it is impossible to meet revenue collection targets with normal performance. Due to increased leakages in tax administration and lax control, due to lack of compliance with tax laws, the revenue has not increased as per the target . "The main thing is the lack of government management, lack of revenue administrative capacity, increasing leakage," said the source. This year, the government has set a revenue collection target of more than 30 percent. Experts argue that this is challenging in itself.
Secretary Ghanshyam Upadhyay claims that revenue collection is more positive than in the past. Compared to last year, there has been an increase of 12/13 percent in revenue, it should be further increased. The goal is to increase the revenue by expanding the scope beyond the tax rate, identifying areas of leakage, controlling leakages, collecting arrears and facilitating the tax payers,' he said. is This is only 19.42 percent of the annual target. In the last seven months of last year, the government spent 63.92 billion, i.e. 21.16 percent of the annual target.
The capital expenditure until last January is about 50 billion less than the government's monthly target. The government had set a target of capital expenditure of 1 trillion 18 billion 40 million rupees by the end of January. This year, the government has allocated 3 trillion 52 billion 354 million rupees towards capital expenditure. In the first seven months of the current financial year, 5 trillion 22 billion rupees have been spent. This is 45.82 percent of the annual target. During the same period last year, current expenditure was 5 trillion 13 billion 37 crore rupees, i.e. 44.96 percent of the annual target.
Until last January, the government has paid 1 trillion 63 billion 81 billion 22 million only in the payment of principal of government debt and investment in government institutions (financial arrangements). This year, 44.6 percent of the budget allocated under the heading of financial arrangements has been spent. Under the heading of financial arrangements, the government allocated 3 trillion 67 billion 284 million 45 million for the current financial year.
In the past seven months, the government has received 7 billion 826 million rupees in foreign grants. This is 16.87 percent of the annual target. In the seven months of this year, the income and expenditure situation of the government is about 95 billion in government finance deficit. During that period, the government has spent 7 trillion 54 billion 8534 million rupees while earning 6 trillion 59 billion 73 billion 96 million rupees.
The government has reduced the budget of the current financial year by 1 trillion 67 billion after it was determined that the income and expenditure targets will not be met. Out of the 18 trillion 60 billion budget allocated, 16 trillion 92 billion has been maintained after the half-yearly review. Finance Minister Bishnu Paudel has revised the budget by showing reasons such as the budget presented by the then Finance Minister Varshman Pune, many programs were included for which resources were not guaranteed, projects were selected across Hachuwa, thousands of projects were also kept at the center. The current budget is only 90.99 percent of the total amount allocated at the beginning.
With the reduction in size, the current expenditure is now 10 trillion 29 billion 30 million (90.24 percent of the initial allocation) and the capital expenditure is 2 trillion 99 billion 50 million 9 million (85 percent of the initial allocation). Last May, the previous government allocated current expenditure of 11 trillion 40 billion 6644 million and capital expenditure of 3 trillion 52 billion 364 million.
