Revenue mobilisation registers encouraging growth

The revenue mobilisation in the first quarter of fiscal year 2008-09 has witnessed a rise of 16 percent to Rs 22.3 billion compared to an increase of 18.8 percent in the corresponding period last year, according to a report of Nepal Rastra bank.

In the review period, income tax, VAT revenue and registration fee posted a higher growth while the volume of customs, excise and vehicle tax revenue recorded a relatively low growth compared to that of the corresponding period of the previous year.

Additionally, non-tax revenue posted a decline of 59.7 percent.

On the other hand, the total government expenditure saw a decline by 2.4 percent to Rs 29.3 billion in the first three months of this fiscal year compared to an increase of 53.7 percent in the corresponding period last year,

The downward spiral in such spending has been ascribed to a decline in recurrent as well as capital expenditure.

The principal repayment expenditure has also seen an increment by 20.8 percent to Rs 4.2 billion mainly on account of the payment of treasury bills amounting to Rs 2.8 billion. nepalnews.com nd Dec 10 08