Government Expenditures Exceed Revenue; Inflation Stands at 4.16%
Kathmandu – The government’s expenditures have surpassed its revenues, although around NPR 350 billion remains in government accounts.
According to the latest report by Nepal Rastra Bank (NRB) on the country’s economic and financial situation up to mid-January, the government has spent NPR 754.85 billion in seven months. This includes NPR 522.63 billion in recurrent expenditures, NPR 68.42 billion in capital expenditures, and NPR 163.81 billion in financial management costs.
In contrast, the total revenue collection during the same period stood at only NPR 642.85 billion, which includes allocations for provincial and local governments. Of this, tax revenue contributed NPR 565.64 billion, while non-tax revenue accounted for NPR 77.21 billion.
Despite the revenue shortfall, the government had a cash reserve of NPR 350.07 billion across various accounts at Nepal Rastra Bank by mid-January. This amount includes funds held by all three levels of government—federal, provincial, and local.
Inflation at 4.16%
The annual point-to-point consumer inflation rate stood at 4.16% by mid-January. NRB data shows that food and beverage inflation was 4.95%, while non-food and service sector inflation was 3.74%. Compared to the same period last year, these figures were 6.59% and 3.98%, respectively.
Among food items, the highest annual price increase was observed in ghee and oil (12.80%), followed by pulses and legumes (9.6%), vegetables (7.56%), and other food products (6.36%).
Inflation by Region
- Rural areas: Inflation rose by 4.73%
- Urban areas: Inflation increased by 3.96%
Inflation by Province
- Koshi Province: 6.15%
- Madhesh Province: 3.91%
- Bagmati Province: 3.35%
- Gandaki Province: 3.40%
- Lumbini Province: 4.16%
- Karnali Province: 4.05%
- Sudurpashchim Province: 4.71%
Inflation by Geographic Region
- Kathmandu Valley: 3.53%
- Terai Region: 4.25%
- Hilly Region: 4.11%
- Himalayan Region: 5.21%
These figures indicate that inflation remains relatively moderate, but regional and sectoral differences highlight the economic pressures faced by different parts of the country.
