Kathmandu
Saturday, July 18, 2026

Madhesh collects 70 percent of targeted revenue in FY 2025/26

July 18, 2026
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JANAKPURDHAM: According to the Ministry of Economic Affairs of Madhesh Province, the provincial government collected Rs 32.88 billion in revenue during the last fiscal year.

Out of the total collection, internal revenue accounted for Rs 5.76 billion, as informed by Rajendra Acharya, the Statistical Officer of the Ministry of Economic Affairs.

The provincial government collected Rs 1.77 billion from land and housing registration and Rs 2.27 billion from vehicle tax.

In the last fiscal year, Rs 795.62 million was collected from driving license distribution and vehicle registration fees, Rs 126.39 million from transportation sector income, and Rs 201.57 million from the sale of riverbed materials.

Under the revenue sharing mechanism, the provincial government received Rs 8.86 billion in Value Added Tax (VAT) and Rs 3.20 billion in Excise Duty.

Similarly, under the grants received from the Federal Government, the province received Rs 7.06 billion as equalization grant, Rs 2.17 billion under current conditional grant, and Rs 1.56 billion under capital conditional grant, according to Statistical Officer Acharya.

Ansh Kumar Jha, the Information Officer of the Ministry of Economic Affairs, stated that the targeted revenue could not be achieved due to a slowdown in land, housing, and new vehicle transactions caused by economic liquidity issues, as well as damages caused to various revenue collection offices of the provincial government during the Gen Z agitation on September 8 and 9, 2025.