Government of Nepal Achieves Over 83% of Revenue Target; Capital Expenditure Lags Behind at 63.20% as of Shrawan 1

As of Shrawan 1, 2082 (July 17, 2025), the Government of Nepal (GoN) has made notable progress in both revenue collection and expenditure management, according to the latest fiscal data.

Revenue Collection Performance

The total revenue collection stood at Rs. 11.79 Kharba, achieving 83.06% of the annual revenue target of Rs. 14.19 Kharba. Under this, tax revenue contributed Rs. 10.50 Kharba against the target of Rs. 12.84 Kharba, marking a realization rate of 81.75%. Non-tax revenue, on the other hand, showed stronger performance, reaching Rs. 1.29 Kharba out of the targeted Rs. 1.35 Kharba— a notable 95.45% achievement rate.

Grants amounted to Rs. 23.53 Arba, achieving only 44.97% of the total projected grants of Rs. 52.33 Arba. Meanwhile, other receipts contributed Rs. 17.37 Arba. Though the budgeted figure for this category was not specified, it represents additional non-traditional revenue sources mobilized by the government.

In total, the Government of Nepal collected Rs. 12.20 Kharba in receipts (revenue, grants, and other receipts combined), representing 82.88% of the total target of Rs. 14.72 Kharba.

Government Expenditure

On the expenditure side, the government's total spending from the treasury reached Rs. 15.23 Kharba, or 81.87% of the allocated Rs. 18.60 Kharba budget. Among the different expenditure headings:

Recurrent Expenditure stood at Rs. 9.80 Kharba out of the total allocation of Rs. 11.41 Kharba, translating to 85.95% utilization.

Capital Expenditure amounted to Rs. 2.23 Kharba against the annual target of Rs. 3.52 Kharba, achieving a 63.20% spending rate.

Financing Expenditure reached Rs. 3.20 Kharba out of the budgeted Rs. 3.67 Kharba, with a performance of 87.14%.

Notably, the report shows a net negative daily expenditure of Rs. 52.18 Crores on the reporting date, with the recurrent expenditure reducing by Rs. 51.13 Crores and capital expenditure by Rs. 1.05 Crores. Financing remained unchanged on that day.

This data highlights that while revenue collection, particularly from non-tax sources, remains relatively strong, there is scope for improvement in grant mobilization and capital expenditure execution.