Kathmandu: Nepal has collected just about half of its revenue target during the first eight months of the current fiscal year 2025/26 (mid-July to mid-March), highlighting mounting pressure on the government’s finances. According to data from the Financial Comptroller General Office under the Ministry of Finance, total revenue collection during this period reached Rs 747.28 billion.
The amount represents only 50.49 percent of the government’s annual revenue target of Rs 1.48 trillion for the fiscal year. Of the total revenue collected so far, tax revenue accounts for Rs 676 billion while non-tax revenue stands at about Rs 70 billion. The government has also received Rs 13 billion in grants during the same period.
Overall government income in the first eight months has reached roughly Rs 765 billion, while total expenditure has climbed to Rs 926 billion. As a result, Nepal’s budget deficit has expanded to around Rs 279 billion by mid-March.
The widening gap between revenue and spending suggests the government is increasingly relying on borrowing even to cover routine administrative expenses.
By mid-March, recurrent expenditure had reached Rs 642 billion, which is 54.37 percent of the annual target of Rs 1.15 trillion. In contrast, capital spending for development projects has remained extremely low.
During the eight-month period, capital expenditure stood at only Rs 78 billion, equivalent to just 19.24 percent of the annual target of Rs 407 billion. The figures show that even after two-thirds of the fiscal year has passed, the government has yet to spend 20 percent of the budget allocated for development and infrastructure projects.
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