Kathmandu, Aug. 13 -- The government has acknowledged that the gap in ambitious revenue collection target and the actual generated amount is one of the underlying risks in the government system.

The 'Fiscal Risk Statement and Strategies' unveiled by the Ministry of Finance (MoF) on Tuesday, states that the government every year needs to curtail the earmarked expenditure due to the falsified prediction of the public revenue collection. "On the institutional side, forecasting errors in revenue and expenditure projections can lead to budget execution challenges, potentially widening fiscal deficits or creating funding shortfalls," reads the MoF's report.

In recent years, revenue forecasting remains a significant challenge, with tax revenue...