The Government of Nepal fell short on both revenue collection and budget expenditure in the fiscal year (FY) 2024/25, reflecting persistent challenges in fiscal management and implementation.

According to data published by the Financial Comptroller General Office (FCGO), the government spent Rs 1.52 trillion out of the total budget of Rs 1.86 trillion for the fiscal year, translating to 81.87 percent of the annual target. Revenue performance also remained weak, with only Rs 1.22 trillion collected against a target of Rs 1.47 trillion—meeting just 82.88 percent of the goal.

In terms of expenditure breakdown, the government spent Rs 980.28 billion under the current expenditure heading, which is 85.95 percent of the Rs 1.14 trillion allocated.

Capital expenditure, which is considered critical for development and infrastructure, remained particularly low. Out of the allocated budget of Rs 352.35 billion under this heading, only Rs 222.68 billion was spent—just 63.2 percent of the target.

Similarly, expenditure under the financial management category reached Rs 320.42 billion, or 87.14 percent of the earmarked amount of Rs 367.28 billion.

The shortfall in revenue collection further exacerbated fiscal pressures. The government managed to collect only Rs 1.22 trillion in revenue by the end of the last fiscal year on July 16, resulting in a fiscal deficit of Rs 303.38 billion. The figures highlight a continued struggle in both mobilizing resources and executing development projects effectively.  -- RSS