25 percent of expenditure in 12th month

The government has spent 25.5 percent of the development budget allocated for the last fiscal year 2070/71 in the last month of the fiscal year. The government spent Rs 107.49 billion in the month, over Rs 3.50 billion a day. The government had spent Rs 313.71 billion by the end of the 11th month and even the end of the year splurge has taken the government spending to just Rs 421.18 billion which is 81.43 percent of the allocated budget of Rs 517.24 billion.

The government had spent just Rs 269.88 billion (52.18%) by the end of the 10th month. The total spending is 12 percent less than even the amended estimate of Rs 479.13 billion during the mid-term review. This is the amount spent by the government in cash. Joint Secretary at the Finance Ministry Baikuntha Aryal stated that the amount of expenditure can rise further as record of expenditure not made in cash has yet to be tallied. He estimated that a total of Rs 450 billion was spent in the last fiscal year.

A whopping 84.25 percent of the last fiscal year’s expenditure was recurrent. It spent Rs 297.31 billion of the Rs 353.41 billion allocated for recurrent expenditure. Capital expenditure, however, has been just 74.65 percent (Rs 63.52 billion) of the allocated budget of Rs 85.09 billion. Similarly, 76.12 percent (Rs 59.92 billion) of the budget allocated for financial management has been spent.

The government formed to hold the second Constituent Assembly (CA) election had brought the annual budget in time last year. The then finance minister Shankar Prasad Koirala had directed all the ministries and bodies to implement the budget on the first day of the fiscal year. Expenditure has been increased in the eleventh hour of the last fiscal year through transfer of budget with sluggish spending as in the past years. The parliament was obstructed for more than a week accusing the government of misusing the budget through transfer. Budget of over Rs 50 billion was transferred during the period.

Computer software for revenue administration

The government has developed a computer software to make revenue administration better-managed. The software for revenue system has been implemented in Kathmandu, Lalitpur and Bhaktapur districts of Kathmandu Valley from the first day of the fiscal year on Thursday, according to the Financial Comptroller General Office.

The Revenue Management Information System (RMIS) will show real-time details of revenue collection like an accounting system shows actual details of spending. RMIS has been implemented to make the process of revenue collection by the government more effective, according to the office. Offices concerned, central offices of the banks collecting revenues, Nepal Rastra Bank (NRB), regulatory office and other stakeholder bodies will have read only access to this software developed for use by the banks collecting revenues. The taxpayers will have to receive income receipt from the tax office concerned confirming receipt of amount after paying tax and non-tax revenues.

There are 13 taxpayers’ service offices, three tax offices, one big taxpayers’ service office, Lalitpur and Bhaktapur tax offices and passport department in the Valley. Similarly, NRB, Nepal Bank, Rastriya Banijya Bank, Nepal Bangladesh Bank, Global IME Bank, NMB Bank and others have been providing financial services for revenue collection.

Source: Karobardaily