Government Revenue Collection Surpasses Previous Year by 7.13%, Falls Short of Revised Estimates

The government has collected Rs. 6.61 Kharba in revenue in the first 8 months of the current fiscal year, which marks an increase compared to the same period last year when revenue collection stood at Rs. 6.17 Kharba. With the conclusion of the first 8 months of the current fiscal year, the government has achieved a revenue collection 7.13% higher than the previous year, reaching Rs. 5.78 Kharba from taxes and Rs. 60.37 Arba from non-tax revenue, along with other receipts.

Despite the uptick in revenue collection, the government's expenditures for the initial 8 months of the current fiscal year amounted to Rs. 8.01 Kharba, marking a significant increase of Rs. 22 Arba compared to the corresponding period last year when expenditures totaled Rs. 7.79 Arba. According to the data from the Office of the Auditor General, the government has allocated Rs. 5.82 Kharba for current expenditure, Rs. 1.38 Kharba for financial management, and Rs. 81.21 Arba for capital expenditure until the month of Falgun.

For the current fiscal year, the government had initially set a budget of Rs. 17.51 Kharba, allocating Rs. 11.41 Arba for current expenditure, Rs. 3.02 Kharba for capital expenditure, and Rs. 3.07 Kharba for financial management. However, the Ministry of Finance has publicized a revised estimate indicating that only Rs. 15.30 Kharba will be spent.

Considering the expenditure until Falgun, it appears that the government might not achieve its revenue collection targets as per the revised estimates. The Ministry of Finance estimates that revenue collection will only reach Rs. 12.2 Kharba, falling short of the target set of Rs. 14.22 Kharba.

To achieve the revised revenue target, the government needs to collect Rs. 5.41 Kharba in the next 4 months, whereas last year, revenue collection from Chaitra to Ashad amounted to Rs. 3.93 Kharba. Meeting the revised revenue target will require a 38% increase compared to the previous year's collection during the same period.