The government has spent only 46 percent of its budget in the first six months of the current fiscal year. This is 10.75 percent more than the second quarter of the previous fiscal year. The government had allocated a budget of 1964.11 billion for the current fiscal year. According to the Ministry of Finance, 944.64 billion 43 million was spent till last December.

This year, Rs 1180.98 billion was allocated under the current heading. Accordingly, 40.82 percent, or Rs 482.10 billion, has been spent on current expenditure till Poush. The total current expenditure for this period has increased by 3.35 percent compared to the previous fiscal year.

Rs 47.54 billion has been capitalised in 6 months. This is 11.66 percent of the annual target. This year, the government had allocated Rs 47.88 billion under the capital heading. During that period, capital expenditure has decreased by 4.86 percent. In the last 6 months, the government has spent 53.29 percent of the annual target under the financial management heading.

The Ministry of Finance has made public the work and achievements completed in the second quarter of the current fiscal year 208/83. In this, the ministry has made public a detailed progress report on budget implementation, revenue management, legal reforms, fiscal federalism, financial sector reforms, planning-monitoring and administrative management. The Ministry of Finance has stated that efforts have been focused on state treasury management, election expenses, strengthening revenue administration and promoting good governance. 

In the first 6 months, the government has collected only Rs 581.40 billion in revenue. Which is Rs 129.80 billion less than the target.     In the first 6 months, the government has collected only Rs 581.40 billion in revenue. Which is Rs 129.80 billion less than the target. This year, the government had set a target of collecting a total of Rs 1.44 billion in revenue. Accordingly, it had set a target of collecting Rs 711.20 billion in revenue by the end of Poush. However, during this period, only Rs 581.40 billion in revenue has been collected. 

Revenue collection up to last Poush is only about 2 percent higher than the same period last year. The Director General of the Internal Revenue Department, Madan Dahal, said that despite the economic activity not being able to move as expected and the country being in an uncomfortable situation due to the Gen-G movement, it is good to see such an improvement in revenue. ‘Revenue collection has not been as per the target. But in the current situation, this much revenue collection is good,’ he said, ‘Moreover, when it comes to the Internal Revenue Department, there is a revenue growth of about 4 percent. It was thought that it would not be possible to collect the same amount as last year. This much growth has been achieved.’ 

Similarly, the Ministry of Finance has also been weak in the clearance of undisbursed funds in the first 6 months of this fiscal year. Out of the total of 125 billion undisbursed funds of the ministry, only eight billion were cleared in the 6 months, bringing it to 117 billion. However, this is a progress of four percent compared to last year. The ministry claims that it has prioritized resource agreement and disbursement focused on the management of the elections to the House of Representatives and the National Assembly. The ministry has stated that the government has provided a resource agreement worth Rs 4.966 billion to the Election Commission on 18 Kartik and an additional Rs 1.779 billion on 20 Mangsir for a total of Rs 6.736 billion. The National Investigation Department has been given a resource agreement worth Rs 28 million and the Nepali Army has been given a resource agreement worth Rs 44.25 billion for the purchase of security equipment. 

The Ministry of Home Affairs and its subordinate bodies have been provided a resource agreement worth Rs 10.393 billion for the election to the House of Representatives. The Nepali Army has been given a resource agreement worth Rs 1.946 billion for the election itself towards current expenses. It is stated that the Election Commission has been provided a resource agreement worth Rs 43.179 billion for the election to the National Assembly member post and the amount has already been released. 

An online evaluation system has been started in all customs offices to ensure full compliance with the 'GAT Valuation' system towards revenue management. The Ministry of Finance stated that the dispute over the Nepal-Mauritius Double Taxation Agreement has been resolved in the last 6 months and the tax deduction on capital gains of the Dolma Impact Fund has been addressed. It is stated that the Nepal-Mauritius Double Taxation Agreement has been terminated and the agreement concluded before the enactment of the Income Tax Act, 2058 has been informed through diplomatic channels. The Customs Act, 2082 is being implemented and the draft Customs Regulations, 2082 has been sent to the Ministry of Law. 

‘In addition to conducting a customs management seminar, multilateral coordination has been carried out to control revenue leakage through the monthly meeting of the High-Level Central Revenue Leakage Control Committee. A complaint management system has been developed in service delivery and complaints received through Hello Government and other means have been continuously addressed,’ the Ministry of Finance said, ‘Consensus has been given to various bodies on the revision of non-tax revenue rates.’ The Ministry also stated that the provision of affixing postage stamps instead of income stamps on public service delivery documents has been removed. 

Towards the implementation of laws and decisions, the Alternative Development Finance Mobilization Act, 2081 has been registered in the Federal Parliament. Amendments to the Payment and Rebate Act, Customs Regulations, Financial Procedures and Financial Responsibility Regulations, Multi-Year Project Source Agreement Standards and Anti-Money Laundering Regulations have been approved and published in the Nepal Gazette.