The government’s expenditure has surpassed its revenue, even though there is a cash reserve of around NPR 3.5 trillion in government accounts.
According to the Economic and Financial Situation Report for the first seven months of the fiscal year 2081/82 (up to mid-February), published by Nepal Rastra Bank, Nepal has spent NPR 754.85 billion.
This includes:
- Recurrent expenditure: NPR 522.63 billion
- Capital expenditure: NPR 68.42 billion
- Financial management expenditure: NPR 163.81 billion
During the same period, total government revenue stood at only NPR 642.85 billion, which includes allocations to provincial and local governments. Of this, tax revenue accounted for NPR 565.64 billion, while non-tax revenue was NPR 77.21 billion.
Despite higher expenditure than internal revenue collection, the government had a cash reserve of NPR 350.07 billion across various accounts by mid-February. This amount includes funds held by all three levels of government in Nepal Rastra Bank. At the end of the previous fiscal year (mid-July), the government’s cash reserve was NPR 83.99 billion.
In the first seven months of the current fiscal year, total expenditure by provincial governments was NPR 51.90 billion, while total resource mobilization was NPR 101.89 billion.
The provincial governments’ total resource mobilization includes NPR 80.94 billion transferred by the federal government through grants and shared revenue, while NPR 20.95 billion was raised from provincial taxes and other sources.
According to Nepal Rastra Bank, broad money supply has increased by more than 4% in the past seven months. In the same period last year, the money supply had risen by 7%. On an annual point-to-point basis, broad money supply increased by 10.1% as of mid-February.
