Kathmandu, June 18 -- The national treasury is fast emptying and with few means of raising taxes and supplementing income, the government could soon be unable to pay employee salaries, social security allowance, pensions and bills from contractors and suppliers, according to Finance Ministry officials.

"We are in a more-or-less breakeven position in terms of income and expenditure," said Uttar Kumar Khatri, the finance ministry spokesperson. "We need to be able to collect enough revenue to pay our bills, and to pay salaries and pensions."

According to the ministry, the government has collected revenue of over Rs692 billion and internal loans over Rs175 billion so far. It has also received foreign grants of Rs11 billion and other receipt...