With fewer than three weeks left before the end of the current fiscal year, the government is under mounting fiscal pressure as it seeks to collect nearly one-fourth of its annual revenue target within the remaining 19 days.
Official data show that the government needs to mobilize an average of Rs 19.34 billion in revenue every day through mid-July to achieve its revenue target for Fiscal Year 2025/26—a goal that appears increasingly difficult given the current pace of collections.
According to the Financial Comptroller General Office (FCGO), the government had collected Rs 1.112 trillion in revenue as of Friday, achieving only 75.17 percent of its annual target of Rs 1.480 trillion. This leaves a revenue gap of Rs 367.51 billion that must be recovered within the remaining days of the fiscal year.
Tax revenue, which constitutes the government’s largest source of income, has also remained below expectations. Against the annual target of Rs 1.325 trillion, the government has collected Rs 1.010 trillion, equivalent to 76.20 percent of the target.
Performance has been even weaker in non-tax revenue collection. Of the targeted Rs 154.41 billion, the government has generated only Rs 102.32 billion so far.
Foreign grant mobilization has also fallen significantly short of expectations. FCGO records show Nepal has received only Rs 24.11 billion in foreign grants, representing 45.11 percent of the annual target of Rs 53.44 billion.
The slow pace of revenue collection has intensified fiscal pressure on the government as it struggles to finance growing recurrent expenditures, capital investment, and debt servicing obligations. With limited time remaining, achieving the annual revenue target appears increasingly unlikely unless collections accelerate sharply during the final weeks of the fiscal year.
Economists warn that a substantial shortfall in revenue could widen the fiscal deficit, constrain development spending, and weaken the government’s capacity to finance priority programs in the closing months of the fiscal year.
