The state treasury of Nepal faced a negative cash balance of Rs 187 billion as of mid-April in the current fiscal year, with soaring expenditure amid slow revenue collection.
The records with the Financial Comptroller General Office (FCGO) show that the fiscal deficit amount increased by 133 billion in the first nine months of the current fiscal year compared to the previous year. As of the end of 2021/22, the federal government had its reserve fund at a negative of Rs 54.74 billion.
The negative balance during one month between mid-February and mid-March surged by Rs 38 billion.
In the review period, the government made receipts of Rs 809 billion, while its expenditure was Rs 943 billion. The government collected revenue of Rs 635 billion and received Rs 11.94 billion in grant, Rs 160 billion in domestic and external borrowing and Rs 2.53 billion in principal and interest repayments.
The government spent Rs 706 billion just under the heading of recurrent expenditure. It shows that the government’s recurrent expenditure exceeds the revenue collection by Rs 71 billion.
During mid-July and mid-April, the government exhausted Rs 107 billion of the allocated amount in capital expenditure and Rs 129 billion for financial management. Compared to a 16 percent fall in revenue collection, the government expenditure surged by more than four percent during the review period.
Out of the revenue collection of Rs 1.113 trillion of all three governments, Rs 986 billion was at the disposal of the central government.
As per the law, the government can take overdraft amounting to five percent of its revenue collection from Nepal Rastra Bank. Based on the revenue collection made by the federal government during the review period this year, it can take up to Rs 49.30 billion on overdraft from the central bank.
