Sri Lanka state non-tax revenues up in first quarter

June 21, 2010 (LBO) – Sri Lanka has seen steep increase in non-tax incomes in the first quarter of 2010 which accounted for more than half the revenue gains made by the state, official data shows. State revenues increased by 26.3 percent in the first quarter to 182.7 billion rupees with tax revenues gaining 12.4 percent and non-tax revenues climbing by a steep 194.6 percent to 32.7 billion rupees.

A finance ministry report said the government would be imposing levies on state banks, an insurance fund and the telecom regulator to get 21.8 billion rupees for the 2010 budget on profits and earnings they made last year.

The Central Bank had already given a 20 billion rupee profit transfer as an ‘advance’ before the end of last year, helping boost state cash flows in late 2009.

The Treasury officially reported a budget deficit of 9.8 percent of gross domestic product after changing the classification to exclude grant financing. With grant financing the deficit was 10.2 percent of GDP.

The early profit transfer from the central bank was 0.4 percent of gross domestic product.

The Treasury said it would take 5.6 billion rupees from the last year’s profits of other banks, for thi