Record high revenue growth

Record high revenue growth
eKantipur.com, 28-May-2007

Amid deepening economic sluggishness mainly due to escalating political turmoil and poor law and order situation, the revenue administration is moving ahead with record growth rate.

According to a press statement issued by Ministry of Finance, the overall revenue collection during the first quarter of the current fiscal year remained at Rs 63.7 billion and the amount was 22.47 percent more than last year's collection and well ahead of the budgetary target of 15 percent.

In addition, the total government cash expenditure during the period has also scaled up to Rs 77 billion, which was 13.4 percent more than last year's expenditure and almost 60 percent of the total cash allocation for the current fiscal year.

The press statement further started that of the total expenditure, the government used Rs 53.15 billion for the purpose of recurrent expenditure, which mainly finances salaries for government employees, security expenditure and expenses for maintaining law and order situation.

Likewise, the total capital expenditure during the period remained pessimistically low at Rs 15 billion, juts 45 percent of the total cash expenditure of Rs 33.35 billion planned for this year. Likewise, the government expended Rs 8.83 billion in repaying principal of domestic as well as foreign loans. The government has allocated Rs 15.17 billion for the purpose of repaying principals of domestic and foreign loans for this current fiscal year.

According to the press release, Nepal Rastra Bank, the central bank of the country, released a total Rs 86.51 billion during the period. Of the total released amount, Rs 53.39 billion was released under the recurrent expenditure while remaining Rs 18 billion for capital expenditure and Rs 9.06 billion for repaying principals of loans, stated the release.