Himal Press 
KATHMANDU: The government’s expenditure remained significantly higher compared to revenue mobilization over the first seven months of current fiscal year 2024/25.
According to the Current Macroeconomic Situation Report for the first seven months of fiscal year 2024/25 unveiled on Monday by the Nepal Rastra Bank, the government’s total expenditure reached Rs 754.85 billion in the first seven months of 2024/25 – a 9.9% increase compared to the same period last year. Recurrent expenditure (Rs 522.63 billion) accounted for the largest share of government expenses, followed by expenditure for financial management (Rs 163.81 billion) and capital spending (Rs 68.42 billion).
Total revenue mobilization posted year-on-year growth of 13.3% to Rs 642.85 billion. Tax revenue contributed Rs 565.64 billion, while non-tax revenue amounted to Rs 77.21 billion. Despite the growth in revenue, the fiscal deficit widened as expenditure growth outpaced revenue collection, the central bank said in its monthly report.
Seven provincial governments recorded a combined expenditure of Rs 51.90 billion during the review period. According to the report, their resource mobilization stood at Rs. 101.89 billion, which included Rs. 80.94 billion received from the federal government in grants and revenue transfers and Rs 20.95 billion in self-generated revenue and other receipts.
The cash balance maintained by the government (including provincial and local government accounts) with the NRB surged to Rs 350.07 billion in mid-February 2025, a significant growth compared Rs 83.99 billion in mid-July 2024. This indicates an improved liquidity management at the government level.
On the monetary front, domestic credit grew by 1.3% during the review period, a slowdown compared to the 3.2% growth recorded in the same period last year. Year-on-year, domestic credit increased by 4.3% in mid-February 2025.
