Government fails to meet revenue mobilisation, expenditure target
The government has neither been able to spend the capital expenditure that could have propelled the economic growth nor meet the revenue mobilisation target in the six months of the current fiscal year 2013-14.
The government fell short of Rs 4.74 billion – due to two largest contributors to the government coffer customs and value added tax (VAT) lower mobilisation – according to its own target in the first half of the current fiscal year, according to the Finance Ministry.
Though, the revenue mobilisation is 21.46 per cent higher compared to the same period last fiscal year's six months, the government has been able to mobilise only Rs 163.44 billion by mid-January against its target of Rs 168.18 billion.
The government was able to mobilise Rs 47.98 billion from VAT against the target of Rs 51.13 billion, falling short of Rs 3.15 billion, in the six months of the current fiscal year. Likewise, the government has been able to mobilise Rs 32.49 billion from customs duty against the target of Rs 32.56 billion.
However, income tax mobilisation – that has witnessed an encouraging trend in recent years – has contributed Rs 34.26 billion, which has surpassed the target of Rs 33.58 billion – apart from excise duty – that has been mobilised at Rs 21.41 billion – some Rs 230 million more than the ministry's target.
Similarly, the the government has been able to mobilise Rs 20.70 billion from non-tax revenue against the target of Rs 19.15 billion, the ministry said, adding that vehicle and land registration fee and the Office of the Company Registrar contributed Rs 6.08 billion against the target of Rs 9.48 billion. "The education tax stood at Rs 520 million."