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2025 Vote on Account’s revenue gains may fall short of primary spending increase
On 6 December, Parliament approved the 2025 Vote on Account, allocating funds for the first four months of the year. To understand what a Vote on Account entails, read our blog here. For January to April 2025, primary expenditure—which includes both recurring and capital spending but excludes interest payments—is budgeted at LKR 1,425 billion. This breaks down into LKR 425 billion for capital projects and LKR 1,000 billion for recurrent expenses. The government expects revenue of LKR 1,600 billion, resulting in a primary balance (revenue minus primary expenditure) of LKR 175 billion. Compared to 2024, both expenditure and revenue have increased significantly. Primary expenditure for 2025 is projected to be LKR 454 billion (47%) higher than the LKR 971 billion spent during an average four-month* period in 2024. However, revenue is expected to grow by only LKR 400 billion (33%). This indicates that the primary balance expected for 2025 could be lower than what is achieved in 2024, extrapolating from the first four months of revenue and expenditure budgeted in the vote on account.
විදසුන්
2025 Vote on Account’s revenue gains may fall short of primary spending increase
On 6 December, Parliament approved the 2025 Vote on Account, allocating funds for the first four months of the year. To understand what a Vote on Account entails, read our blog here. For January to April 2025, primary expenditure—which includes both recurring and capital spending but excludes interest payments—is budgeted at LKR 1,425 billion. This breaks down into LKR 425 billion for capital projects and LKR 1,000 billion for recurrent expenses. The government expects revenue of LKR 1,600 billion, resulting in a primary balance (revenue minus primary expenditure) of LKR 175 billion. Compared to 2024, both expenditure and revenue have increased significantly. Primary expenditure for 2025 is projected to be LKR 454 billion (47%) higher than the LKR 971 billion spent during an average four-month* period in 2024. However, revenue is expected to grow by only LKR 400 billion (33%). This indicates that the primary balance expected for 2025 could be lower than what is achieved in 2024, extrapolating from the first four months of revenue and expenditure budgeted in the vote on account.
විදසුන්
2025 Vote on Account’s revenue gains may fall short of primary spending increase
On 6 December, Parliament approved the 2025 Vote on Account, allocating funds for the first four months of the year. To understand what a Vote on Account entails, read our blog here. For January to April 2025, primary expenditure—which includes both recurring and capital spending but excludes interest payments—is budgeted at LKR 1,425 billion. This breaks down into LKR 425 billion for capital projects and LKR 1,000 billion for recurrent expenses. The government expects revenue of LKR 1,600 billion, resulting in a primary balance (revenue minus primary expenditure) of LKR 175 billion. Compared to 2024, both expenditure and revenue have increased significantly. Primary expenditure for 2025 is projected to be LKR 454 billion (47%) higher than the LKR 971 billion spent during an average four-month* period in 2024. However, revenue is expected to grow by only LKR 400 billion (33%). This indicates that the primary balance expected for 2025 could be lower than what is achieved in 2024, extrapolating from the first four months of revenue and expenditure budgeted in the vote on account.
විදසුන්
2025 Vote on Account’s revenue gains may fall short of primary spending increase
On 6 December, Parliament approved the 2025 Vote on Account, allocating funds for the first four months of the year. To understand what a Vote on Account entails, read our blog here. For January to April 2025, primary expenditure—which includes both recurring and capital spending but excludes interest payments—is budgeted at LKR 1,425 billion. This breaks down into LKR 425 billion for capital projects and LKR 1,000 billion for recurrent expenses. The government expects revenue of LKR 1,600 billion, resulting in a primary balance (revenue minus primary expenditure) of LKR 175 billion. Compared to 2024, both expenditure and revenue have increased significantly. Primary expenditure for 2025 is projected to be LKR 454 billion (47%) higher than the LKR 971 billion spent during an average four-month* period in 2024. However, revenue is expected to grow by only LKR 400 billion (33%). This indicates that the primary balance expected for 2025 could be lower than what is achieved in 2024, extrapolating from the first four months of revenue and expenditure budgeted in the vote on account.
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The Problem with Procurement
Sri Lanka’s lack of compliance with the RTI Act and failure to meet IMF Commitments.Sri Lanka’s 2023 IMF Programme includes a commitment to disclose public procurement contracts through an online fiscal transparen...
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මූලාශ්රය:
Daily News
Ceylon Chamber welcomes National Digital Economy S...
Focusing on enhancing the digital infrastructure to support the growth of the digital economy, including broadband access and digital connectivity. Prioritizing the swift implementation of...
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මූලාශ්රය:
EconomyNext
Fitch downgrades 10 Sri Lankan Banks after local s...
Fitch Ratings said it had downgraded 10 Sri Lanka banks following a re-calibration of the local currency sovereign rating. All 10 banks on rating watch negative. https://econo...
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මූලාශ්රය:
Daily FT
Govt. gazettes Tax Amnesty Bill
The Government has published a Tax Amnesty Bill which would indemnify persons who voluntarily disclose taxable supply, income or assets, against liability from investigation, prosecution and penalties.
වැඩිදුර කියවන්න
විදසුන් කියවන්න: සිවිල් පරිපාලනය
කලාපයේ සෙසු රටවලට වඩා විශාල රාජ්‍ය සේවයක...
දකුණු සහ අග්නිදිග ආසියානු කලාපයේ රටවල් අත...
Purification Corrupted
Find out how a much-needed water purifica...
ශ්‍රී ලංකාව: දකුණු ආසියාවේ අනෙක් රටවලට ස...
Sr...
The Problem with Procurement
Sri Lanka’s lack of compliance with the RTI Act and failure to...
Is Maldives going down Sri Lanka's path?...
The graphs below depict the Primary Balan...
2022 වන විට මුල්‍ය දත්ත ප්‍රකාශයට පත් කර...
...
The Alternatives to Universal Tax Regist...
This note argues that the Sri Lankan government’s recent proposal to implement universal ta...
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ඉහත පෙන්වා ඇති පරිදි, ශ්‍රී ලංකාවේ කාන්තාවන් ශ්‍රම වෙළඳපොළට පිවිසීමේ සම්භාවිතාව පිරිමින්...
ශ්‍රී ලංකා වරාය අධිකාරිය - ලාභ ලබන රජය ස...
ශ්‍රී ලංකා වරාය අධිකාරිය 2015 වසරේ ...
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Let’s Shield the EPF with the Instincts of Winston...
This article was compiled by Dr. Nishan de Mel. Dr. Nishan de Mel is the Executive Director of Verité Research and an economist with extensive acade...
වැඩිදුර කියවන්න
Is Sri Lanka Addicted to Missing Revenue Targets?
This article was compiled by Dr. Nishan de Mel. Dr. Nishan de Mel is the Executive Director of Verité Research and an economist with extensive acade...
වැඩිදුර කියවන්න
WHT and PAYE had the largest growth in Q3 2023
The Fiscal Management Report 2024, recently released by the Ministry of Finance, offers a comprehensive analysis of the government's revenue streams. A notable highlight from the report is the remarkable growth in revenue from two key co...
වැඩිදුර කියවන්න
