Sri Lanka expects strong revenues, record domestic borrowings in 2013

Nov 09, 2012 (LBO) – Sri Lanka is expecting to grow revenues by an optimistic 19.2 percent to 1.25 trillion rupees cut foreign borrowings by 55 percent and ratchet up domestic borrowings by a record 64 percent to 421 billion rupees, a budget for 2013 shows. In 2013, Sri Lanka is expecting to run a budget deficit of 507.4 billion rupees or 5.8 percent of an estimated 8.7 trillion rupee gross domestic product, down in terms from a provisional deficit of 6.2 percent of GDP for 2012.

Sri Lanka is expecting to grow tax revenues by an optimistic 22.9 percent to 1,132 billion rupees, compared to a provisional growth of 12.2 percent in 2012 and an actual growth of 12.2 percent in 2011.

In 2011 tax revenues were 8.0 percent or 80 billion rupees below budget at 920.9 billion rupees. But non tax revenues rose 27.1 percent to 134.1 billion rupees.

In 2013 Sri Lanka had upped taxes on exported raw produce including many agricultural goods. Import levies were raised and value added tax extended to the retail trade, while special interest groups got more VAT exemptions.

The administration is expecting current spending to rise 13.9 percent to 1.26 trillion rupees. In 2012 current expenses rose 0.5 percent to 1.13 trillion rupees, according to provisiona