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Nepal’s revenue surges past Rs 25 billion in first two months of FY 2026/27

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KATHMANDU: Nepal’s government revenue grew by over Rs 25 billion during the first two months (mid-July to mid-September) of FY 2026/27, reaching Rs 183.20 billion compared to Rs 157.67 billion in the same period last year.

According to the Financial Comptroller General Office, tax revenue comprised Rs 172.42 billion while non-tax receipts added Rs 10.77 billion.

Including grants and other income, total state receipts totaled Rs 190.10 billion—a Rs 30 billion increase year-over-year.

Concurrently, total government expenditure surged to Rs 199.83 billion, up by nearly Rs 20 billion from last year’s Rs 180.81 billion.

This spending breakdown consists of Rs 122 billion in recurrent expenses, Rs 7.66 billion in capital projects, and Rs 70.13 billion toward financial management and debt servicing.

Debt repayment costs continue to significantly outpace capital expenditure on infrastructure.

Overall, the budget reflects a Rs 9.70 billion deficit for the two-month period, which the government is covering through internal borrowing initiated in mid-July.