The government income and expenditure has witnessed a vast gap in the first 70 days of the current fiscal year 2021/22.
About Rs. 185.46 billion revenue was collected by the government while the expenditure was just Rs. 97.4 billion. The income was 16.1 per cent of the annual estimate of Rs. 1151.6 billion while the expenditure was 5.91 per cent of the total budget of Rs. 1647.57, according to the statistics provided by the Financial Comptroller General Office (FCGO).
Of the total income received by the government, Rs. 165.05 billion was tax revenue and Rs. 20.4 billion was non-tax revenue. Similarly, it collected Rs. 16.79 billion as ‘other receipts’.
In terms of expenditure, Rs. 63.87 was recurrent and Rs. 2.79 billion capital expense while Rs. 30 billion was spent on financing.
Mobilisation of the capital budget has remained very poor in the past period of more than two months with just 0.64 per cent spending of the total Rs. 435.2 billion development allocation.
Change in the government immediately after the announcement of the budget by the previous government and Supreme Court’s ruling to void the budget presented through ordinance had caused delay in the implementation of the budget. Finance Minister Janardan Sharma presented a replacement bill at the parliament two weeks ago which was passed amidst interruption by the main opposition CPN (UML), that was protesting against the Speaker of the House, Agni Prasad Sapkota.
Meanwhile, the country witnessed a government ‘shutdown’ for a week as the budget ordinance failed to get endorsed within 60 days after being tabled.
However, FM Sharma has promised to increase the capital expenditure with about 10 per cent budget mobilisation every month. He also assured that a mechanism to expedite the development work and monitor spending would be formed soon. Lower spending would directly affect the economic growth projection which is set at 7 per cent for the current fiscal year.