#EconomicNews #Nepal #GovernmentSpending
The latest data released by the Nepal Rastra Bank reveals a concerning trend in the country’s financial situation. According to the report based on the facts of the current fiscal year 2081/82, Nepal has incurred expenditures amounting to NPR 754.85 billion within seven months. This includes current expenditures of NPR 522.63 billion, capital expenditures of NPR 684.42 billion, and financial management expenditures of NPR 163.81 billion.
Despite the increased spending compared to revenue collection, the total revenue management by the government during this period stands at NPR 428.85 billion. This figure encompasses both revenue and non-revenue sources, with tax revenue at NPR 565.64 billion and non-tax revenue at NPR 772.1 billion.
Ramesh Khatri, a representative of Kansai Nepal News, commented on the situation, stating that the government’s internal revenue has seen a significant rise in expenses. Notably, in the previous fiscal year, there was a cash surplus of NPR 350 billion across various government accounts. However, in the current fiscal year, as of Magh, there is a cash surplus of NPR 350.7 billion across different government accounts.
Furthermore, the financial report mentions that the total expenditure of the provincial governments in the past seven months amounts to NPR 519 billion, with a revenue management of NPR 189 billion. The provinces have managed their total revenue through grants transferred by the central government and divisible funds, reaching NPR 809.4 billion, along with revenue generated from operations and other sources amounting to NPR 209.5 billion.
According to the Central Bank, the expanded money supply has increased by more than four percent in the last seven months. This growth rate is higher than the four percent increase observed in the corresponding period of the previous year. On an annual basis, the expanded money supply in Magh has increased by ten decimal one percent.
In conclusion, while the government’s spending has surged in comparison to its revenue, the financial situation remains a point of concern. Ramesh Khatri from Kansai Nepal News emphasized the need for prudent financial management to ensure long-term economic stability and growth for Nepal.
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Author: MAYA | HARUTO
Posted at: March 11, 2025 3:03 am
