Aagya Khabar
Janakpurdham

The Madhesh Province Government has stated that it collected a total of more than Rs. 32.88 billion in revenue and income under various headings during the fiscal year 2082/83. According to the Ministry of Finance, this amounts to only about 70 percent of the target set by the provincial government.

According to the ministry’s data, the province collected Rs. 5.76 billion in internal revenue from its own sources. The largest contribution to the province’s income came from land registration fees and motor vehicle-related revenue.

During the last fiscal year, Rs. 1.77 billion was collected from land registration fees and Rs. 2.27 billion from motor vehicle tax. Likewise, significant amounts were also collected from driving licenses, vehicle registration fees, transport service charges, and the sale of stone, gravel, and sand, according to the ministry.

Under the revenue-sharing arrangement from the federal government, the province received Rs. 8.86 billion under the Value Added Tax (VAT) heading and Rs. 3.20 billion from excise duty. In addition, the province also received billions of rupees through fiscal equalization grants, conditional recurrent grants, and conditional capital grants, according to the ministry’s details.

According to Ansh Kumar Jha, Information Officer at the Ministry of Finance, the major reasons why revenue did not increase as expected last year include the economic slowdown, sluggishness in land transactions, and the decline in the sales of new vehicles. He also said that physical damage to some government offices responsible for revenue collection during the protests in the month of Bhadra also affected revenue management.

The ministry has stated that it aims to improve revenue collection in the upcoming fiscal year by expanding the revenue base, making tax administration more effective, and revitalizing economic activities.