Bagmati province misses revenue targets

The Bagmati provincial government has collected only 10 percent of its estimated annual revenue in the first quarter. Revenue collection has been impacted by weak internal sources, limited cash collection, and shortfalls in grants received from the federal government.

Shri Krishna Acharya, spokesperson for the Ministry of Economic Affairs and Planning, stated that the government collected Rs 6.86bn in revenue in the first three months of the current fiscal year (July to October). The provincial government has set a revenue target of Rs 64.5bn for this fiscal year, of which only 12.95 percent has been collected.

From internal revenue sources, the provincial government collected Rs 898.4m, achieving 19.8 percent of its Rs 4.53bn target.

Major opposition parties criticize the government, alleging that it is overly focused on revenue collection while falling short of its development goals. Prem Bahadur Pulami, a provincial assembly member from the CPN (Maoist Center), remarked, “This is the path to failure for this government. No part of the government seems to be functioning effectively.”

The provincial government expects a subsidy of Rs 15.5bn from the federal government, of which it received Rs 2.06bn (13.23 percent) in the first quarter. However, no additional federal funds have been received so far. Revenue data indicates a lack of focus on enhancing internal revenue growth. 

“There is a recurring issue with provincial governments failing to utilize allocated budgets and mobilize resources. Bagmati, being the province with the central capital, should set an example,” stated Pralhad Lamichhane, former member of the Provincial Policy and Planning Commission of Bagmati Province. He emphasized the need for the provincial government to prioritize resource identification, mobilization, and expenditure, as there are adequate financial resources within the province.

For the current fiscal year, the provincial government expects to generate Rs 27.38bn from taxes and Rs 6.51bn from other revenue sources.