The Ministry of Finance has made public its activities and achievements for the second quarter of the current fiscal year 2080/81 (2023/24), highlighting progress in budget execution, revenue management, legal reforms, financial federalism, and governance.
According to the ministry, 46.06 percent of the annual budget had been spent by mid-January, which is 10.75 percent higher than in the same period last fiscal year. Of the total allocated budget of Rs 19.64 trillion, Rs 9.04 trillion was spent. While recurrent expenditure showed moderate growth, capital expenditure remained weak, with only 11.66 percent of the allocation utilized.
Revenue collection remained under pressure. Against a target of Rs 14.40 trillion for the fiscal year, only Rs 5.81 trillion was collected by mid-January—Rs 129.8 billion short of the target. Progress in clearing arrears was also limited, with only 6.4 percent of outstanding arrears settled during the period.
The ministry prioritized election-related financing, releasing over Rs 6.3 billion to the Election Commission for House of Representatives elections, along with additional funds for security agencies. It also implemented several revenue and customs reforms, including online valuation systems at customs offices and legal amendments related to taxation, customs, and financial management.
Key policy actions included approval of the Financial Sector Development Strategy, enforcement of limits on large cash transactions, capital market reforms, interest subsidies under concessional loans, and measures to curb unproductive spending. The ministry also reported administrative reforms, grievance redressal, staff rationalization, and savings through organizational restructuring.
Overall, while budget spending improved, the report underscores continued challenges in capital expenditure, revenue mobilization, and arrears settlement.
