Kathmandu: The Finance Ministry has reported moderate performance and progress towards achieving its set objectives during the second quarterly review of the current fiscal year 2023/24.

In a review meeting conducted on Tuesday to assess progress until March 13 of the ongoing financial year, Finance Minister Barshaman Pun highlighted that public finance management was facing challenges.

The Finance Minister's Secretariat stated that Minister Pun directed relevant bodies to address issues concerning stagnant capital expenditure and revenue collection.

Minister Pun noted that the lack of increase in capital expenditure has hindered revenue collection. He emphasized the importance of improving inter-ministry and inter-agency coordination, as well as boosting private sector morale to invigorate the economy.

The Minister urged regulatory bodies under the Ministry to work diligently to meet the annual targets, citing poor performance in regulatory functions.

Out of the 175 milestones set by the Ministry for the current fiscal year, only 34 were completed by March 13, with 94 in progress and 12 yet to commence.

The Ministry has accomplished tasks such as establishing standards for resource agreements and multi-year contracts, as well as implementing procedures for the automated tax return of diplomatic missions.

Additionally, a high-level committee was formed within the fiscal year to reform the existing tax system, and bills for amending the Customs Act, Secured Transactions Act, and Banks and Financial Institutions Act have been registered in parliament.

The Ministry has also met targets related to policy provisions for foreign currency exchange and special support for small farmers, small and medium enterprises, and startup entrepreneurs.