#NepalEconomy #Revenue #Fiscal
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By Sandeep Chaudhary

Revenue and Grants Reach Rs. 75B in a Month – Can Nepal Maintain Fiscal Discipline?

Revenue and Grants Reach Rs. 75B in a Month – Can Nepal Maintain Fiscal Discipline?

Nepal’s government collected a total of Rs. 75.1 billion in revenue and grants in mid-August 2025/26, according to data published by the Nepal Rastra Bank (NRB). The inflow includes federal government revenues, provincial transfers, and foreign grants, reflecting relatively strong revenue mobilization compared to total expenditure of Rs. 44.3 billion in the same period.

Of the total, the federal government contributed the lion’s share at Rs. 73.5 billion, while provincial and local government transfers accounted for Rs. 11.2 billion. Foreign grants added another Rs. 1.6 billion, showing that external support still plays a small but relevant role in fiscal operations.

The figures indicate that Nepal’s fiscal system can generate a short-term surplus when revenues remain strong and expenditure growth is contained. However, analysts caution that the challenge lies in maintaining fiscal discipline as capital spending, debt repayments, and recurrent expenditure commitments are likely to rise in the coming months.

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Nepal Begins Budget Work, Sets Up Revenue Advisory Committee to Shape Tax and Economic Reforms Kathmandu — Nepal’s Ministry of Finance has formally kicked off the process of preparing the national budget for the upcoming fiscal year by constituting a Revenue Advisory Committee, signaling the start of the government’s annual fiscal planning cycle. Officials say the move is aimed at collecting structured policy input before the budget ceiling, priorities, and tax proposals are finalized. According to the ministry, the committee has been formed under a decision of Finance Minister Rameshwar Prasad Khanal dated Magh 28 (Nepali calendar), with the Ministry’s Revenue Secretary serving as coordinator. The ministry’s spokesperson, Tank Prasad Pandey, said the committee has already started work, indicating that early-stage consultations and technical reviews are now underway. At its core, the committee’s mandate is broader than routine “tax suggestions.” It has been asked to advise on the economic context and on what the budget should prioritize—meaning it can influence both the revenue strategy (how the state raises money) and the policy direction (where the state plans to intervene, reform, or incentivize). In practice, such committees often become the route through which competing interests—business groups, sector associations, experts, and government agencies—try to shape the budget narrative.

Dipesh Ghimire

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1 Mar, 2026