The revenue ratio will be 23.5 percent of GDP.

An ambitious objective of 23.5 percent revenue ratio relative to GDP has been set by the government in its internal revenue mobilization policy.

The use of digital payments, surveillance, and market monitoring will be encouraged.

The Ministry of Finance has set a goal to increase overall revenue to 23.5 percent, total tax income to 20.9 percent of GDP, and non-tax revenue to 2.6 percent by the fiscal year 2085–2086.

Only 18.9% of the GDP was generated from income in the fiscal year 2079–2080. The GDP revenue ratio as a whole for the current year is 22.3 percent.

According to government predictions, by 2085–2086 the rise in total tax income based on GDP will only be 18.4%. Based on GDP, revenue growth for the current year is 19.5%. This ratio was only 16.2 percent in 2079–2080.

The strategy from the Ministry of Finance states that the revenue targets of the 16th five-year plan will be synchronized with tax revenue and the GDP ratio. By the conclusion of FY 2085–2086, the government hopes to raise the revenue–GDP ratio from 18.09 percent in FY 2079–2080 to 23.05 percent.

By FY 2085–86, the penultimate year of plan implementation, the budget deficit–GDP ratio is expected to drop from 7.002 percent in FY 2079–80 to 6.005 percent.

The Internal Revenue Mobilization Strategy (DRMS), a five-year strategy being executed by the government, is scheduled to run from 2081–2082 until 2085–2086.

By the end of the plan term, a further increase in the tax revenue-to-GDP ratio is anticipated through the implementation of the suggested modifications in policy measures, reaching 2.4 percent.

Comprehensive changes to the management of taxes and customs are anticipated to generate an extra 0.1% in tax revenue. According to the approach, by the end of FY 2085–2086 the income tax–to-GDP ratio is expected to have increased from 4.7 percent in FY 2079–2080 to 6.9 percent.

In a similar vein, the government has set a goal to raise the GDP-personal income tax ratio from 2.5 percent to 3.7 percent and the GDP-corporate income tax ratio from 2.2 percent to 3.2 percent over the plan period.

The value added tax to GDP ratio is expected to rise from 5.4 percent in 2079–2080 to 6.2 percent in 2085–2086.

It is anticipated that during the plan period, the domestic VAT to GDP ratio will rise from 2.2 percent to 2.5 percent.

During the plan period, an increase from 3.2 percent to 3.8 percent is anticipated in the import-based VAT to GDP ratio.

Similarly, by the last year of plan execution, the excise duty-to-GDP ratio is expected to rise from 2.7 percent in 2079–2080 to 3 percent.

Additionally, it is anticipated that the customs duty-to-GDP ratio will rise from 3.4 percent to 4.5 percent.

According to the Internal collection Mobilization Strategy, the government is under financial strain in the current difficult financial climate as a result of the comparatively slow growth in tax collection relative to the rise in public spending. The government claims that in order to pay for the budget deficit, both domestic and international debt has increased recently. The amount of outstanding public debt rose from 27.2 percent to 42.7 percent of GDP over this time, while the tax revenue-to-GDP ratio fell from 19.1 percent to 16.2 percent.

According to the Ministry of Finance, in order to successfully solve the country's socioeconomic issues and lessen financial obstacles, it has released a plan towards sustainable development as well as a mid-term policy framework to direct resource generation and allocation.

The plan lays out a strategy to increase internal revenue on a broad, predictable, and sustainable basis by taxing all activities that generate income. In order to reduce tax evasion, a thorough and investigative tax audit approach has been decided upon, together with a robust digital infrastructure for business facilitation and tax payer services. It is stated that in order to do this, digital payments, market monitoring, and monitoring will be encouraged.

A plan to broaden the scope of revenue collection has been established in response to this. It is anticipated that the department's policy will increase the scope of taxes and bring transparency to the tax collection process because of the voluntary tax compliance, digital tax collection, and strengthened tax administration.

It is asserted that this technique will make it simpler to handle the decline in tax collection and the budget deficit.

According to the internal revenue mobilization strategy, there was a negative ten percent reduction in Nepal's revenue collection in 2079–2080 as a result of the country's economy slowing down following the covid-19 pandemic. This also had a significant impact on industrial production.

Strategic goals have been set in order to bolster government funding, such as raising internal revenue mobilization, encouraging taxpayer voluntary compliance with tax laws and operating systems, enhancing the tax and customs administration's capacity for risk management, and automating tax and customs operations.