Govt’s expenses higher than its revenue

KATHMANDU: The government is spending more than it is earning.

The government is in a deficit of more than Rs 100 billion as at January 26. According to Financial Comptroller General’s Office, the government has managed to mobilize total revenue of Rs 503 billion during the period. This includes different taxes, non-tax revenue, and grants.

The government has mobilized Rs 420 billion as tax revenue, Rs 48.25 billion as non-tax revenue, and Rs 4.8 billion in this fiscal year which began in mid-July.

The total government expenditure, however, is at Rs 606.42 billion as of January 26. A lion’s share of these expenses is toward recurrent expenditure. The government has spent Rs 480 billion in this heading.

Recurrent expenditure refers to the ongoing expenses of a government, such as salaries, wages, and other operational costs.

The widening gap between the government’s earnings and expenses suggests that government will have to borrow money to pay the salary of its staffers.

The government has spent Rs 58.63 billion on capital expenditure and Rs 67.76 billion on fiscal transfers.