Govt needs Rs 32.14b to meet revenue target

KATHMANDU, JUNE 26:

The government needs to mobilise only Rs 32.14 billion in the last month of the current fiscal year as by the 11th month (mid-June), it has already mobilised Rs 257.46 billion revenue against the annual target of Rs 289.60 billion.

At a time when the government has been failing to spend development expenditures swelling its treasury by over Rs 50 billion, revenue mobilisation by mid-June has posted some 22.04 per cent increment compared to the same month last fiscal year, the Finance Ministry’s figures revealed.

The government has been able to mobilise Rs 225.85 billion under tax revenue and Rs 31.61 billion under non-tax revenue making it a total of Rs 257.46 billion by mid-June, it said, adding that the growth rate of revenue has been encouraging despite no changes in the tax rates for the current fiscal year due to the delayed budget amid the political turmoil.

“In a month from mid-May to mid-June, government has been able to mobilise Rs 19.20 billion under tax revenue and Rs 3.80 billion under non-tax revenue making it a total of Rs 23.01 billion, which is an increment of 10.18 per cent compared to last fiscal year’s 11th month.”

The ministry has attributed the growth in revenue mobilisation to increasing contribution of the service sector, reform in revenue administration and plugging the loopholes in revenue leakages.

The growing contribution of VAT and income tax is a positive signal, according to the ministry that is planning to increase revenue target by 35 per cent, though private sector is critical of the government’s revenue-obsession but lack of appetite in development expenditure.

Source: THT