Himal Press 
KATHMANDU: The country’s budget deficit has reached Rs 209 billion in the first 10 months of the fiscal year 2025/26, highlighting major shortcomings in revenue collection and expenditure management.
According to the Financial Comptroller General’s Office (FCGO), total government expenditure during this period stood at Rs 1,164.04 billion, while total receipts amounted to Rs 954.92 billion, resulting in a deficit of Rs 209.12 billion.
With just two months remaining in the fiscal year, the government has collected only Rs 927.55 billion in revenue against the annual target of Rs 1,419.30 billion. This falls short even of the revised target of Rs 1,286 billion set during the mid-term budget review in February. To meet the revised goal, the government would need to raise an additional Rs 331 billion in just two months, which looks highly improbable, if not impossible.
Progress in mobilizing foreign grants has also been dismal, with just 30.83% of the targeted Rs 523.26 billion realized. Only Rs 161.34 billion has been secured in foreign assistance as of mid-May.
Overall expenditure has reached 62.57% of the total budgeted Rs 1,860.30 billion over the first 10 months. Capital expenditure remains particularly weak, with only 34.44%, or Rs 121.36 billion, of the allocated Rs 352.35 billion spent so far. While capital spending typically surges in the final months of the fiscal year, spending the remaining Rs 232 billion in the next two months appears virtually impossible.
Meanwhile, recurrent expenditure, which covers salaries, pensions and subsidies, has reached 68.24%, with Rs 778.38 billion out of the allocated Rs 1,140.66 billion spent till mid-May.
