By the end of the second quarter of FY 2024/25, the government achieved 39.43% of its annual revenue collection target, but capital expenditure remained sluggish, with only 16.16% of the capital budget utilized, according to data from the Financial Comptroller General Office (FCGO).  

For comparison, during the same period in the last fiscal year, the government had achieved 34.9% of its revenue target, with capital expenditure at a similarly low 16.3%.  

Revenue and Expenditure Highlights  

Revenue Collection: The government collected Rs 559.6 billion in the first six months of FY 2024/25, compared to Rs 496.49 billion in the same period last fiscal year.

Capital Expenditure: Out of the allocated Rs 352.35 billion capital budget, only Rs 56.94 billion has been spent. Capex, in the same period last fiscal year, stood at Rs 49.24 billion when the target was Rs 302.07 billion.  

The revenue target for this fiscal year was revised upward to Rs 1,419.3 billion, from the initially announced Rs 1,260.3 billion, by then-Finance Minister Barsha Man Pun during the budget presentation.  

Recurrent and Financing Expenditure

The total government spending during the period amounted to Rs 667.6 billion, representing 35.89% of the annual target.

Recurrent Expenditure: The government spent Rs 452 billion, or 39.63% of the budget allocated for recurrent expenses, by January 13.

Financing: Around Rs 158.66 billion, or 43.2% of the allocated budget under this heading which is mainly used for debt servicing, has been utilised so far.  

The government received Rs 7.37 billion in grants during the review period, achieving just 14.09% of the targeted Rs 52.32 billion for FY 2024/25.

Last fiscal year, the government met 72.43% of its revenue collection target and utilized 63.47% of its capital budget. However, much of the capital spending occurred in the eleventh hour, a longstanding trend that undermines project efficiency and fiscal planning.