Government misses revenue and expenditure targets for fiscal year 2023/24

In the fiscal year 2023/24, the Nepalese government set a budget of Rs 1.751 trillion, but by mid-July, only Rs 1.408 trillion had been spent. This means a significant portion of the budget was not used, leading to several important consequences.

The government spent 83.41% of total allocated recurrent expenditures. This difference suggests that while the government managed to sustain basic operations, it failed to fully utilize available resources. Public services may suffer from insufficient funding, leading to reduced quality and accessibility. 

For instance, healthcare, education, and social welfare programs might not receive the necessary support, affecting the well-being of the population. Moreover, the failure to fully deploy allocated funds could lead to a lack of public trust in government efficiency and accountability.

Only 63.47% of amount allocated for developmental projects was used . This under utilization implies  delays and inefficiencies in project implementation. 

Delays in infrastructure and development projects can slow down economic growth and improvements in public services, impacting citizens' quality of life. 

The government 74.44% of the target this year. Although this amount is higher than the previous fiscal year'srevenue collection, it still fell short of the goal. 

This shortfall in revenue collection can have several consequences. The government may need to increase borrowing to cover the gap, leading to higher public debt. 

High public debt can result in more of the budget being used to pay interest, leaving less money for public services and development projects. It also puts pressure on future budgets and can limit the government’s ability to respond to economic challenges.

Addressing these issues through strategic reforms and efficient implementation is crucial for Nepal’s future development and economic stability.

Let's discuss these updates and their implications for Nepal's economic future.


Found this update insightful? Let us know your thoughts in the comments!
And don’t forget to repost and reshare this update to keep your network informed and engaged.