Nepal, March 19 -- This article examines provincial revenue collection and overall fiscal conditions based on the Financial Comptroller General Office data for fiscal year 2023-24. It concludes with an assessment of whether provinces are financially sustainable.

The constitution of Nepal grants provinces limited revenue authority, including house and land registration fees, vehicle tax, entertainment tax, advertisement tax, tourism tax, agricultural income tax, service charges, fines and penalties. However, house and land registration fees, vehicle, entertainment and advertisement taxes are exclusive revenue sources for local levels.

A single tax administration system has been adopted to manage overlapping revenue rights in the country,...