The Finance Ministry has reported a 17% increase in revenue collection during the first four months of the current fiscal year (FY 2024/25) compared to the corresponding period of last fiscal year. Data presented at the Ministry's Higher Management Committee meeting on Thursday revealed that revenue collection in the first four months of FY 2023/24 amounted to Rs 276 billion, whereas Rs 323.24 billion was collected in the first four months of the current fiscal year. Despite this growth, the government fell short of its revenue target.

Over the past five fiscal years, the government has consistently failed to meet its annual revenue collection target.

In FY 2019/20, the government managed to collect only 71.38% of the revenue collection target of Rs 1112.03 billion. The situation improved in FY 2020/21, with 92.50% of the Rs 1011.76 billion target being achieved. However, in FY 2021/22, the performance slightly declined, with revenue collection reaching 90.24% of the Rs 1180.60 billion target. The trend worsened in FY 2022/23, as the government collected just 68.23% of the ambitious target of Rs 1403.15 billion. Although FY 2023/24 showed some recovery, revenue collection still fell short, with only 74.54% of the Rs 1422.54 billion target being met.

For the current FY 2024/25, the revenue target is Rs 1419.30 billion, which is nearly 34% higher than last year’s actual revenue collection. The target for the first four months was Rs 406.37 billion, of which Rs 323.24 billion (80%) has been achieved. This represents a 16.85% increase compared to the corresponding period last year.

Deputy Prime Minister and Finance Minister Bishnu Prasad Paudel emphasized the importance of effective resource and expenditure management to meet revenue goals. He outlined priorities such as expanding the tax base, collecting arrears, improving tax administration, enhancing employee conduct, strengthening inter-ministerial coordination, addressing issues outside customs checkpoints, and tackling challenges within the tax system. Minister Paudel also instructed strict legal action against those attempting to disrupt the tax collection system.

Finance Secretary Dr. Ram Prasad Ghimire highlighted the ministry’s commitment to achieving the revenue target. He emphasized the need for everyone involved to intensify their efforts and implement revenue collection strategies effectively.

Finance Ministry Spokesman Mahesh Bhattarai noted that while revenue collection has improved, enhanced coordination among stakeholders is essential to meet this year’s targets. Similarly, Director General of the Department of Customs Harisharan Pudasaini and Director General of the Inland Revenue Department Ram Prasad Acharya assured that their departments are addressing challenges and capitalizing on opportunities to achieve the revenue collection goals. -- RSS