Thursday, January 17, 2019

Government manipulates revenue mobilisation data

The two-third majority communist government has manipulated revenue mobilisation data, though it has been boasting of a brisk mobilisation.
Financial Comptroller General Office (FCGO) – considered as the government treasury – has been found to be inadvertently producing inflated revenue mobilisation data because of double counting, may be on government's direct order or may not be. AS the government has transferred earlier chief of FCGO for revealing the real data, the error could be orchestrated to show the better government performance.
The erroneous reporting on revenue mobilisation has been revealed after the FCGO stated that the government had mobilised Rs 520 billion revenue in the first half of the current fiscal year. The experts were surprised because it was 21 per cent more than the government’s own revenue mobilisation target of Rs 429 billion for the six-month period  -- from mid-July to mid-January – but the central bank, which also tracks the government’s revenue collection, said that it has mobilised Rs 414.3 billion that is only 96.4 per cent of the revenue target. The government has missed its revenue mobilization target – for the first six months of the current fiscal year – by 3.4 per cent in the first six months of the current fiscal year.
It is said that the FCGO has failed to present accurate statistic because of double calculation of fund transferred to divisible fund.
Since the beginning of the current fiscal year – as the country has entered into the federal system – the central government has been sharing 30 per cent of value added tax (VAT and another 30 per cent of inland excise duty with provinces and local bodies as part of the policy to financially empower sub-national governments and institutionalise fiscal federalism. The portion of VAT and inland excise duty dedicated to provinces and local bodies is parked in the divisible fund.
Although the amount deposited in the divisible fund is also a part of federal government’s revenue, the FCGO has initially kept it separate, which means the FCGO’s system had to deduct the amount kept in the divisible fund from the federal government’s gross revenue mobilisation. But it seems the FCGO has not been deducting the fund, counting it double and presenting the inflated figure 'to please the government', which is more conservative that the democratic government.
However, the FCGO claimed that it is revising the revenue mobilisation figure from the beginning of the current fiscal year.
The FCGO provides daily updates on government’s income and expenditure through its website.

No comments: