The government has fallen short of its first-quarter revenue collection targets from both domestic and external sources in the current fiscal year (FY) 2025/26.
According to records from the Financial Comptroller General Office (FCGO) and the Ministry of Finance (MoF), revenue mobilization through the Inland Revenue Department (IRD) and the Department of Customs (DoC) remained below expectations during the period from mid-July to mid-October.
MoF data show that the IRD collected only 81.41 percent of its targeted revenue by mid-October. Against a goal of Rs 142 billion, the department collected Rs 115.79 billion. The government has set an annual target of Rs 737 billion in domestic revenue for FY 2025/26.
Customs revenue also underperformed, totaling Rs 118.52 billion against the target of Rs 143.76 billion, reaching 82.45 percent of the goal and leaving a shortfall of Rs 25.24 billion. However, customs revenue increased by 9.72 percent compared to the same period last fiscal year. The government aims to collect Rs 588.25 billion under this heading in the current FY.
In income tax, the government collected Rs 46.90 billion out of the Rs 71.22 billion target, achieving just 65.85 percent. Non-tax revenue also performed poorly, meeting only 41.45 percent of its quarterly target.
Overall, the government achieved 77.46 percent of its total revenue collection plan for the review period. It also received just over Rs 2 billion in foreign grants, far below the annual target of Rs 53.44 billion.
MoF officials attributed the weak performance to the prolonged economic slowdown. They added that the situation was further worsened by the Gen Z movement and the floods of October 3–4, which disrupted trade and economic activity.
In FY 2024/25, the government collected Rs 1.178 trillion in revenue against a target of Rs 1.419 trillion, achieving 83.07 percent of the annual plan.
