The revenue mobilization in the last fiscal year has registered a meager growth of 2.8 percent due to the deteriorating business climate caused by the political instability.

According to the Ministry of Finance, the government collected a total of Rs 72.10 billion from revenue during the period. The collection last year was Rs 70.12 billion.

The revenue collection is much lower that the government’s target. The government had targeted to mobilize Rs 82 billion, an increase by 14 percent compared to the previous year. The growth rate was around 12 percent the previous year.

The erstwhile royal government had cut customs duties on about 130 commodities through Financial Ordinance. The ministry had earlier said the decision of the royal government to adopt wrong tax policies incurred losses of Rs 2.7 billion to the state.

The total expenditure of the government in the last fiscal year stood at Rs 96.10 billion; Rs 62 billion under recurrent expenditure and Rs 19.14 billion under capital expenditure. Another Rs 14.10 billion was spent for paying off public debt, both internal and external.