Nov 20, 2013 (LBO) – Sri Lanka’s state revenues were down 7.6 percent to 481.7 billion rupees in the first half of 2013 with tax revenues down 5.1 percent to 458.7 billion rupees, official data showed. “The only result is that the producers’ money is confiscated for the benefit of a bureaucracy that adds insult to injury by using part of that confiscated money to push the public around.”
Compared to estimated gross domestic product current spending was down one percent to 6.8 percent, though economic activity seems down this year, as corporate results showed, despite high official growth numbers.
This year even tobacco sales went down so steeply amid multiple tax hikes that total revenues and taxes fell in absolute terms.
Amid the revenue shortfall, the gap in the current account of the budget rose 66 percent to 113.5 billion rupees or 1.3 percent of GDP in the six months.
Capital expenditure rose 9.5 percent to 267.2 billion rupees or 3.1 percent of GDP.
The overall budget deficit rose at a slower pace of 22 percent to 380.7 billion rupees or 4.38 percent of estimated gross domestic product, only a little higher than the 4.1 percent budget gap reported last year for the same p