December 18: A study conducted by the government has shown that the gap between the government’s income and expenditure is gradually widening where the income is on the weaker side. In the current fiscal year, the government announced a budget of Rs 1.793 trillion to be spent under various headings. As of December 14, the total budget expenditure is just 24.2 percent. The government, which aims to raise Rs 1.4 trillion in revenue this year, has collected only 22.96 percent during this period.

During the review period, 8.83 percent of the development budget and 29.91 percent of the current expenditures have been spent. The government, which is earning Rs 2.95 billion on a daily basis, is spending more than 4 billion.

The gap between government income and expenditure seems to be increasing since a long time. A government study has shown that the gap between revenue collection and expenditure is increasing with the increase in administrative expenses and the need for development in Nepal.

According to a recent study by the National Planning Commission, this gap is increasing due to lack of resources, resource management capacity, and unscientific projection, ambiguity in priorities, random project selection and resource allocation. The revenue and expenditure gap has been increasing for the past 4.5 decades.

From the year 2031/32 to 2035/36, the gap between revenue collection and expenditure was Rs 1 billion. The average gap of income and expenses between 2073/74 and 2077/78 is Rs 262 billion. According to the study, the gap between revenue and expenditure reached the highest point (Rs 361 billion) in the year 2074/75 in the last four and a half decades.

Studies have shown that the gap between revenue collection and expenditure increased significantly after the promulgation of the new constitution in 2072 BS (2015 AD). The average economic growth from the year 2073/74 to 2075/76 was also more than 6.5 percent. The study revealed the fact that Nepal's launch capacity has not been effective since 70 years.

The study has shown that many factors such as political instability, projection method, economic environment and projection capacity affect public expenditure. From the year 2030/31 to 2045/46, the average estimated budget gap was 12 percent. The gap was 12 percent during the conflict period, 13 percent during the subsequent transition period and 20 percent after the constitution was promulgated in 2072.