Sri Lanka state revenues up 19.7 to May

Chief Regulatory Officer at CSE Renuke Wijayawardhane presenting the listing certificate to Executive Chairperson at Renuka Hotels Shibani Thambiayah

Aug 09, 2011 (LBO) – Sri Lanka’s state revenues rose 19.7 percent to 358.3 billion rupees in the five months to May 2011 in line with an annual targeted rate of 17.8 percent and expenses rose 5.4 percent to 417.1 billion rupees, official data showed. But there was still a gap between current expenditure and total revenues (deficit of the account) of 58.8 billion rupees indicating that the state cannot manage day to day expenses with total revenues, according monthly fiscal data released by the Central Bank.

The revenue deficit is higher than the total projected for the year of 53.4 billion rupees. However it is lower than the 75.4 billion rupees revenue deficit reported in April and a higher revenue gap a year earlier.

Capital expenditure rose 25.4 percent to 130.5 billion rupees, expanding the overall budget deficit to 189.3 billion rupees before grants.

After grants of 3.1 billion rupees, the budget gap was 186.2 billion rupees or around 2.94 percent of forecasted gross domestic product for 2011.

The state debt stock, another proxy for the budget gap rose 218.1 billion rupees in the period.

The administration has also raised defence spending by another 20 billion rupees for 2011, though it is expected to be financed out