Karnali Province Sees Significant Increase in Internal Revenue Despite Budget Implementation Weaknesses

Surkhet. The Karnali Province government, despite showing weaknesses in budget implementation, has improved its internal revenue. In the first 9 months of the current fiscal year (2082/083), the provincial government has earned 48 crore 3 lakh 95 thousand 862.58 rupees in internal revenue.

In the same period of the last fiscal year (2081/082), the provincial government had earned around 41 crore. This time, the revenue has increased by approximately 7 crore, informed Lalit Thapa, accounting officer at the Provincial Treasury Comptroller's Office.

The provincial government has a target of earning 96 crore 74 lakh 11 thousand in internal revenue for the current fiscal year. Based on this target, a budget of approximately 33 billion was brought for the current fiscal year.

Although the target set in the budget may not be met by the end of Asar, this year's revenue is expected to be much higher compared to previous years, according to Ganesh Bahadur Chand, senior revenue officer at the Ministry of Economic Affairs and Planning. Looking at all the data, the internal revenue is expected to increase by 8-10 crore compared to last year.

'We have set a target of 96 crore by imposing royalties,' he told RatoPati, 'It might not reach 80 crore, but we estimate it could reach 74-75 crore.'

Last year, the annual internal revenue target was 83 crore 44 lakh 65 thousand, but only 65 crore 94 lakh was earned.

Previously, the provincial government earned the most in the fiscal year 2080/081. In that year, the target was 83 crore 62 lakh, and the earnings were 72 crore 53 lakh 74 thousand.

See the target and progress of internal revenue by the Karnali Province government in the past:

                                        Note: The total revenue does not include the income from the current fiscal year up to the end of Chaitra.

Reasons for Improvement in Internal Revenue

According to Ganesh Bahadur Chand, senior revenue officer at the Ministry of Finance, the scope of taxes was expanded in many areas this year. Following this, the Public Accounts Committee of the Provincial Assembly has been working on recovering outstanding dues.

'Due to the repeated directives from the committee, a good amount of money has been recovered from outstanding dues,' Chand said, 'Additionally, revenue has been generated from the sale and distribution of agricultural produce and forest royalties.'

The most significant provision in the 'Karnali Province Economic Act, 2082' brought by the provincial government for the current fiscal year, which could improve the province's revenue, was the 'Special Arrangement Regarding Sale and Distribution of Forest Products'.

This provision aimed to end the old system where the entire structure and budget for forest management were borne by the province, but the revenue generated was sent to the federal government as royalties.

'The entire structure, budget, and management of forests are under the province, but the revenue was going to the center as royalties,' said senior revenue officer Chand. 'Therefore, we have made a special arrangement so that the revenue from the sale and distribution of forest produce within the province (e.g., fees charged when consumer committees sell) is deposited directly into the provincial consolidated fund.'

Forest officials have committed that if this arrangement is implemented, at least 25 to 30 crore rupees in revenue can be collected.

In the 9-month period, revenue collection from other forest-related income and forest royalties has increased by approximately 8 crore. This is the first year, and as the system is improved and managed in the coming years, the government expects revenue from this sector to continue to grow.

According to Revenue Officer Chand, the rate of land registration fees has also increased slightly this year, and there has been an improvement in the transportation sector.

Starting this year, driving licenses are being issued from Birendranagar itself. Last year, the license distribution service was temporarily suspended. The government is also working to broaden other revenue sources.

Work Being Done by Establishing a Separate Revenue Branch

The provincial government is working in the revenue sector by establishing a separate revenue branch and a revenue consultation committee. Four sub-committees have also been formed under this committee. The revenue consultation committee is working on revenue improvement as well as identifying other revenue sources.

The revenue branch was established with the objective of systematizing and identifying revenue sources. Taxes have also been made stricter compared to the past. A policy has been implemented to prevent arable land from being left fallow. If anyone leaves arable land fallow, they will have to pay a fine.

A fine of 500 rupees per year has been imposed for leaving up to 10 ropanis of arable land fallow. Similarly, a fine (tax) of 1,000 rupees per year has been imposed for leaving 10 to 20 ropanis fallow, and 1,500 rupees for leaving more than 20 ropanis of arable land fallow.