KATHMANDU- Bagmati Province has collected less revenue than its target in the fiscal year 2023–24. According to the Ministry of Economic Affairs and Planning of Bagmati Province, Rs 9.33 billion less revenue was collected than the target.

The Bagmati Province government had estimated to collect Rs 48.25 billion from different topics—revenue distribution, internal sources, and grants received from the federal government—but collected Rs 39.22 billion, said Information Officer of the Ministry of Economic Affairs and Planning, Suraj Poudel.

The province government had set a target of collecting Rs 26.68 billion from revenue distribution in the last fiscal year, but 81.85 percent (Rs 21.84 billion) was collected, he added. Information Officer Poudel stated that 97.52 percent of the target of raising revenue from internal sources was realized.

The provincial government collected revenues of Rs 3 billion, 662 million, and 20 thousand, as against the target of collecting Rs 3 billion, 755 million, and 235 thousand. According to him, it was estimated that the province would receive a grant of Rs 17 billion, 812 million, and 300 thousand from the federal government, but it received only 77.01 percent, or Rs 13 billion, 717 million, and 26 thousand. In fiscal year 2022/23, revenue collection was also 17 percent less than what the provincial government had estimated.

The provincial government had a target of collecting Rs 55 billion and 31 million in fiscal year 2022/23, but it collected Rs 45 billion and 88 million. The provincial government had estimated to collect Rs 62 billion, 709 million, and 78 thousand from various income sources, including the last year’s cash reserve in fiscal year 2022/23, but collected 105.45 percent, or Rs 66 billion, 126 million, and 920 thousand, said Hari Prasad Upadhyay, the Chief of the Bagmati Province Treasury and Comptroller’s Office Hetauda.

Upadhyay explained that the decrease in revenue is due to the decline in revenues from VAT, income tax, natural resources mining tax, and land revenue, among others, as well as the federal government cutting back on some programs attributing to the economic recession.