KATHMANDU: Government revenue collection has been affected by the Gen Z protests that began on September 8.

The demonstrations coincided with the main tax filing period, causing tax and customs offices to close and resulting in a decline in collections.

According to the Financial Comptroller General Office, revenue collected in the second month of fiscal year 2024/25 was Rs 72.75 billion, compared to Rs 73.45 billion in the same month last year.

For the first two months of the current fiscal year, total revenue stood at Rs 157.53 billion, down from Rs 168.42 billion in the same period last year — a drop of nearly Rs 10.89 billion.

Of the total collected revenue this fiscal year, Rs 150.0 billion came from tax revenue, and Rs 7.13 billion from non-tax revenue.

Additionally, the government received Rs 1.27 billion in grants and Rs 1.17 billion from other sources, bringing total revenue to Rs 159.98 billion.

Despite the fall in revenue, government spending increased by Rs 40 billion.

By the second month of current fiscal year, total expenditure reached Rs 180.17 billion, compared to Rs 139.77 billion in the same period last year.

The largest portion, Rs 114.18 billion, was spent on current expenses, followed by Rs 59.62 billion on debt repayment and Rs 6.35 billion on capital expenditure for development projects.

The rise in current and debt-related spending accounts for the overall increase in expenditure.