KATHMANDU, June 27: With less than three weeks remaining before the end of the current fiscal year, the government faces a daunting fiscal challenge: collecting nearly a quarter of its annual revenue target in just 19 days.
Official records show that the government must mobilise an average of Rs 19.34 billion in revenue every day through mid-July if it hopes to meet its ambitious revenue target for Fiscal Year 2025/26—a feat that appears increasingly difficult given the pace of collections so far.
According to the Financial Comptroller General Office (FCGO), the government had collected only Rs 1.112 trillion in revenue as of Friday, achieving 75.17 percent of its annual target of Rs 1.480 trillion. This leaves a shortfall of Rs 367.51 billion, which would need to be raised within the remaining 19 days of the Fiscal Year (FY).
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Tax revenue, the government's primary source of income, has also lagged behind expectations. Of the targeted Rs 1.325 trillion in tax receipts, the government has collected only Rs 1.010 trillion, equivalent to 76.20 percent of the annual target.
Performance has been weaker in non-tax revenue collection. Against a target of Rs 154.41 billion, the government has generated only Rs 102.32 billion so far.
Foreign grants have also fallen well short of expectations. The FCGO data show that Nepal has received only Rs 24.11 billion in grants—just 45.11 percent of the annual target of Rs 53.44 billion.
The sluggish revenue mobilisation shows the government's growing fiscal pressure at a time when it is grappling with rising expenditure commitments including recurrent spending and capital project financing. The government is unlikely to meet its annual target, potentially widening fiscal imbalances and limiting its spending capacity unless revenue collection accelerates significantly in the final days of the FY.
