Government Fails to Meet Revenue and Expenditure Targets
July 17, 2024 | Investopaper
During the fiscal year 2080-81, the government faced challenges in meeting its financial targets, as reported by the Office of the Auditor General. Revenue collection reached 74.29 percent of the targeted Rs. 1,472 billion, amounting to Rs. 1,093 billion. This shortfall was indicative of broader fiscal management issues as the government struggled to achieve its revenue goals despite efforts to revise income estimates twice throughout the year.
On the expenditure side, the government allocated a budget of Rs. 1,751 billion for the fiscal year, but by mid-July, expenditures had already reached Rs. 1,408 billion. This spending represented 80.44 percent of the total budgeted amount, with significant portions allocated to current expenses.
Specifically, current expenditures were 83.41 percent of the allocated Rs. 1,141 billion, while capital expenditures amounted to 63.47 percent of the Rs. 3,020 billion allocated. Financial management expenditures totaled Rs. 2,646 billion, amounting to 86.07 percent of the Rs. 3,074 billion allocated.
Despite efforts to adjust fiscal estimates through mid-year reviews, the government’s challenges persisted. By May, revised estimates pegged total expenditure at Rs. 1,530 billion, equivalent to 87.4 percent of the initial allocation. The adjustments made during these reviews aimed to reallocate resources more efficiently, yet the results suggested ongoing difficulties in aligning expenditure with revenue targets.
