KATHMANDU – Nepal's government spending reached Rs 667.60 billion (approximately $5 billion USD) in the first six months of the fiscal year 2024/25, according to a report released by the Nepal Rastra Bank (NRB), the country's central bank. The "Current Macroeconomic and Financial Situation of Nepal," based on data ending mid-January 2025, details the government's fiscal activities.

The expenditure breakdown reveals that Rs 452 billion was allocated to recurrent costs, Rs 56.94 billion to capital investments, and Rs 158.66 billion to financial expenditures. This spending reflects the government's ongoing operational costs, development projects, and financial obligations.

On the revenue side, the government collected Rs 559.61 billion, including funds earmarked for transfer to provincial and local governments. This revenue comprises Rs 489.40 billion from taxes and Rs 70.21 billion from non-tax sources. While revenue collection reached a substantial figure, it fell short of the total expenditure during the period.

Consequently, the government's cash balance in accounts held with the NRB saw a significant boost. By mid-January 2025, the balance stood at Rs 297.70 billion, a considerable jump from Rs 83.99 billion in mid-July 2024. This surplus reflects the difference between revenue and expenditure, and includes funds belonging to provincial and local governments.

The NRB report also shed light on the financial activities of provincial governments. During the same six-month period, provincial governments spent Rs 44.81 billion. Their total resource mobilization reached Rs 84.91 billion. This included Rs 67.17 billion in grants and revenue sharing from the federal government, along with Rs 17.74 billion generated through their own revenue streams and other receipts. This highlights the financial interdependence between the federal and provincial levels of government in Nepal.

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