The government mobilized only 76.79 percent of its projected revenue during the first four months of the current fiscal year, falling short by Rs 98.68 billion.
According to the Ministry of Finance (MoF), the revenue collection target for the period from mid-July to mid-November was Rs 425.23 billion, but actual collection reached just Rs 326.55 billion.
For the latest month alone (mid-October to mid-November), the government collected Rs 78.33 billion against a target of Rs 103.70 billion, achieving only 75.49 percent of the monthly projection.
Despite the shortfall, the MoF noted that revenue mobilization during the first four months was Rs 3.31 billion higher than the same period last fiscal year, when Rs 323.24 billion had been collected.
Weak Customs and Inland Revenue Performance
- Customs revenue: Rs 74.59 billion collected, 76.96 percent of the target of Rs 96.92 billion
- Inland revenue: Rs 152 billion collected, 80.11 percent of the target of Rs 190 billion
The ministry attributed the shortfall to weaker performance in both customs duty and inland revenue.
Low Capital Expenditure and Rising Resource Gap
Capital expenditure remained low at Rs 25.31 billion, just 6.21 percent of the allocated Rs 407.88 billion, while overall government expenditure stood at 23.87 percent (Rs 468.88 billion out of Rs 1.964 trillion).
The combination of sluggish revenue mobilization and rising recurrent spending has created a resource gap of Rs 135 billion. Economists warn that this widening fiscal deficit could further strain public debt.
Debt servicing has also been substantial, with Rs 122 billion spent—32.67 percent of the annual target. The government has earmarked Rs 375.24 billion for interest and principal repayment on public debt for FY 2025/26, citing growing repayment obligations amid slow revenue growth.
