Revenue Collection Reaches Only 82% of Target in 8 Months, Capital Spending Below 20%

The Government of Nepal has collected Rs 751.86 billion in revenue during the first eight months (mid-July to mid-March) of the current fiscal year 2025/26, which is only 82.60 percent of the target set for the period. The government had aimed to collect Rs 910.20 billion by the end of Falgun. According to the Ministry of Finance, revenue collection in the month of Falgun alone stood at Rs 82.53 billion, achieving 85.46 percent of the monthly target of Rs 96.57 billion. Although the government has set an annual revenue collection target of more than Rs 1.4 trillion for the current fiscal year, only about half of the target has been achieved in the first eight months. Data from the Office of the Financial Comptroller General shows that total revenue collection reached Rs 747.28 billion by Falgun, which is around 50.49 percent of the annual target. Out of the total, tax revenue accounted for Rs 676 billion while non-tax revenue stood at around Rs 70 billion. The government also received Rs 13 billion in grants during the period. Meanwhile, the gap between government income and expenditure has widened. In eight months, total income reached around Rs 765 billion, while government expenditure climbed to Rs 926 billion, resulting in a budget deficit of Rs 279 billion. On the spending side, recurrent expenditure reached Rs 642 billion, whereas capital expenditure related to development projects remained very low at only Rs 78 billion, which is about 19.24 percent of the annual target. With two-thirds of the fiscal year already over, capital spending still below 20 percent indicates weak implementation of development projects.