Sri Lanka budget revenues on track, expenses up in July

Sept 20, 2010 (LBO) – Sri Lanka’s state revenues were on track with a projected budget for the first seven months to July 2010 but current expenses have started to creep up, keeping the revenue deficit wide, official data show. Total revenues were up 22.7 percent to 355.4 billion rupees up to July, with non-tax revenues up a steep 77 percent from a year earlier compared to a 10 percent increase projected for the full year. But non tax revenues rose towards the latter part of 2009 with central bank profits.

Revenue Deficit

The deficit in the current account of the budget, or the difference between total revenues and current expenses was down 22 percent from last year at 125.4 billion rupees.

The revenue deficit was equal to about 2.2 percent of projected gross domestic product during first seven months of 2010, higher than the full year target of 2.0 percent, but was lower than 3.3 percent a year earlier.

The state also maintained capital expenditure, up 2.7 percent to 146.6 billion rupees.

Excluding grant funding the deficit was at 4.8 percent of GDP down from 5.98 percent a year earlier, indicating an annualized gap of 8.2 percent of GDP only slightly above a projected 8.0 percent.

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