Without ensuring that our public construction, government purchase, supply, revenue administration and offices providing government service are efficient, transparent, responsible, non-corrupt in delivering service, it is not possible to provide to the people the feeling and experience of good governance. The development expenditure is continuously rising due to our weakness in selecting development projects. While in the front of regular expenditure, there has been serious problem in expenditure management as a result of increasing burden of debt servicing and salary as well as allowances. 25.Our capacity of debt servicing has not increased as anticipated due to the lack of utilizing loan proceeds in a productive manner. Consequently, we are now mobilizing only about 11 percent of GDP as revenue.
Considerable amount is spent on salary, allowance, pension and government subsidy.
Besides, due to the uncontrolled increase in the operating expenses of offices, the situation is that only a small. In order to eliminate the increasing imbalance between the revenue and expenditure, there is no alternative except to provide added emphasis on expenditure management and revenue mobilization. Unless, there is a rapid increment in economic activities, it would not be possible in the short run to mobilize maximum revenue from the income tax. As only the Value Added Tax appear as our reliable source of revenue mobilization in the long run, the slackness appeared in its effective implementation has made our, internal resource mobilization challenging. Hon'ble Speaker, 26.