Kathmandu: The Government of Nepal’s financial performance for the first four months of the fiscal year 2024/25 has shown significant growth in both expenditure and revenue, according to the latest data released by the Ministry of Finance and the Financial Comptroller General Office (FCGO).

Total government expenditure during this period reached Rs. 415.02 billion, marking a 16.7% increase compared to the same period last fiscal year. The breakdown of expenditure includes recurrent costs of Rs. 292.53 billion, capital expenditures of Rs. 34.53 billion, and financial management outlays totaling Rs. 87.96 billion. The sharpest rise was seen in financial management, which surged by 61.5% from the previous year.

On the revenue side, the government mobilized Rs. 323.24 billion in total revenue, reflecting a 16.8% increase compared to the previous fiscal year. Tax revenue, which forms the majority of the government’s income, stood at Rs. 289.90 billion, up 14% from last year. Non-tax revenue also saw a significant rise of 49.3%, reaching Rs. 33.34 billion.

The surge in revenue was attributed to improved tax collection mechanisms and a rebound in economic activity, despite challenges in the global economy.

As of mid-November 2024, the cash balance of the government, including provincial and local governments, stood at a substantial Rs. 214.14 billion, a sharp increase from Rs. 91.78 billion in mid-July 2024. This indicates a healthy liquidity position for the government, although challenges remain in balancing expenditure across sectors.

At the provincial level, total expenditure amounted to Rs. 25.46 billion, while resource mobilization reached Rs. 55.35 billion. Of this, Rs. 44.72 billion was transferred from the central government, with the remaining Rs. 10.63 billion sourced from local revenues and other receipts.

While the government has made strides in revenue collection, the significant increase in expenditures, particularly in financial management and capital projects, highlights ongoing challenges in fiscal discipline and budget allocation. The government is expected to maintain its focus on boosting revenue generation and controlling non-essential spending to ensure fiscal sustainability in the remainder of the fiscal year.

The financial results for the first four months of FY 2024/25 suggest a mixed outlook for Nepal’s economy, with strong revenue growth but rising government expenditure, particularly in areas that could impact the long-term fiscal health.