Kathmandu Metropolitan City Collects Over NPR 4.21 Billion in Revenue

1st January 2026, Kathmandu

In a significant update on the financial health of the nation capital Kathmandu Metropolitan City has announced that it has successfully collected more than 4.21 billion rupees in revenue as of Poush 9 of the current fiscal year.

KMC Collects Massive Revenue

This financial milestone was highlighted by Deputy Mayor Sunita Dangol who provided a detailed breakdown of the city earnings and its progress toward annual fiscal targets. The revenue figures indicate a steady inflow of funds from various sources including local taxes and government grants which are essential for sustaining the city ambitious infrastructure and social development projects. As the metropolis continues to navigate its large scale budget the collection efficiency remains a key indicator of the local government operational success.

BREAKDOWN OF REVENUE SOURCES AND GRANT ALLOCATIONS

The total revenue of 4.21 billion rupees is composed of several distinct streams that reflect the diversified financial base of the Kathmandu Metropolitan City. Deputy Mayor Dangol specified that 2.67 billion rupees was generated through internal sources which includes property taxes business licenses and other municipal fees. In addition to internal income the city received 779.98 million rupees through revenue sharing mechanisms with higher levels of government. Furthermore 753.99 million rupees was provided as conditional grants from both federal and provincial governments. These grants are specifically earmarked for targeted sectors such as education health and heritage conservation ensuring that national priorities are addressed at the local level.

PROGRESS TOWARD FISCAL YEAR INCOME TARGETS

Despite the multi billion rupee collection the metropolis still has a significant journey ahead to meet its total annual goal. According to official figures the city has currently achieved 27.86 percent of its total revenue target for the fiscal year. When looking specifically at internal revenue the collection stands at 26.44 percent of the annual goal. For the current fiscal year Kathmandu Metropolitan City has set an ambitious total income target of 15.11 billion rupees. Out of this total the city expects to raise 10.12 billion rupees from its own internal revenue sources. The remaining 4.04 billion rupees is expected to flow in from federal and provincial governments through a combination of conditional grants equalization grants and revenue sharing.

SETTLEMENT OF IRREGULAR EXPENDITURES AND ARREARS

Beyond revenue collection the metropolitan administration is also focusing on fiscal discipline and the settlement of past financial irregularities. Gayatri Pudasaini the Coordinator of the Metropolitan Accounts Committee shared that the 18th executive meeting has approved a proposal to resolve 263.95 million rupees previously flagged as irregular expenditures. This proposal will be recommended to the Office of the Auditor General for formal settlement. This move is part of a broader effort to clean up the city accounts which have seen unsettled arrears accumulating from fiscal year 2073/74 up to 2080/81. Addressing these audit observations is crucial for maintaining the transparency and accountability of the municipal government.

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AUDIT REVIEWS AND PREVAILING FINANCIAL RULES

The committee further elaborated on the nature of the unsettled amounts stating that 227.55 million rupees is currently subject to regular settlement under the prevailing municipal and national rules. This suggests that the documentation and procedural requirements for these expenditures are being finalized to meet the auditor standards. However a smaller portion of 36.41 million rupees remains pending for a more rigorous audit review. By proactively managing these financial legacy issues the Kathmandu Metropolitan City aims to reduce its total outstanding arrears and improve its standing in national governance rankings which often prioritize the reduction of irregular spending.

STRATEGIC IMPORTANCE OF INTERNAL REVENUE GROWTH

For a city like Kathmandu achieving independence through internal revenue is a major strategic priority. The ability to collect 10.12 billion rupees from its own residents and businesses allows the metropolis to fund local priorities without being entirely dependent on the central government’s budget. Internal revenue primarily comes from house and land taxes rent taxes and commercial business taxes. Deputy Mayor Dangol has previously emphasized the need for a more citizen friendly tax system and the use of digital platforms to make payments easier for the public. The current collection of 2.67 billion rupees represents the baseline upon which the city plans to build more robust financial services and public utilities.

FUTURE OUTLOOK AND MUNICIPAL DEVELOPMENT PLANS

As the fiscal year progresses the Kathmandu Metropolitan City plans to accelerate its spending on infrastructure social security and urban innovation. The revenue collected so far will be funneled into projects such as waste management improvements road expansions and the preservation of Newari heritage sites. The leadership under Mayor Balen Shah and Deputy Mayor Sunita Dangol is focused on ensuring that every rupee collected translates into tangible benefits for the city residents. With the upcoming months typically seeing higher tax compliance as the deadline approaches city officials are optimistic that they will come closer to the 15.11 billion rupee mark by the end of the fiscal year.

CONCLUSION AND NEXT STEPS FOR CITIZENS

In conclusion the collection of over 4.21 billion rupees in revenue by Poush 9 is a testament to the scale of operations and the economic activity within Kathmandu Metropolitan City. While the city has reached nearly 28 percent of its goal the efforts to settle irregular expenditures show a commitment to institutional integrity. Taxpayers and residents can expect continued focus on governance reforms and the effective utilization of these funds for urban development. As the city moves toward its annual target the emphasis will remain on transparency and the delivery of high quality municipal services to the heart of the nation.

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