Sri Lanka’s total expenditure during the first seven months this year more than doubled the revenue, Central Bank report revealed.
Accordingly the government posted revenue of Rs 779.8 during the first seven months of 2021 and the expenditure during the same period was Rs. 1814.4 billion.
Budget deficit has hit Rs.1014.6 mark while the total debt burden has increased due to borrowings both locally and internationally amounting to Rs16751.7 billion.
Presenting the budget 2022 in Parliament Finance Minister Basil Rajapaksa noted that the loss of revenue to the country and the Treasury is over Rs. 500 billion up now this year
The government has lost Rs. 160,00 billion in revenue due to the COVID-19 pandemic situation, Finance Minister Basil Rajapaksa said in Parliament on Thursday 07 during the debate on the regulations imposed under the Financial Bill and Export Import Control Bill.
Sri Lanka Finance Ministers different figures in revenue loss in different occasions need some clarification as the finance ministry has published financial statement in October with diverse revenue estimates.
According to this statement, Sri Lanka’s budget deficit has hit Rs.1,016 billion by July 2021 and Rs. 549 billion had been printed triggering a US$ 2.7 billion balance of payments deficit.
The overall budget deficit up to July 2021 was Rs. 1,014.6 billion up from Rs 872.5 billion rupees in 2020 It indicated in a separate column of the financial statement.
The Government revenue has now come to a level that is insufficient to cover the day-to-day recurrent expenditure, says Finance Minister Basil Rajapaksa said on Friday 13.
This was a valid comment made by the minister official data amid cascading policy errors involving monetary and fiscal ‘stimulus’ in a pandemic.
In another policy error, Mercantilist authorities controlled imports, but the liquidity flowed into permitted areas boosting non-controlled imports t o a 17 months high. In the absence of money printing imports should have at least fallen by the net fall in tourism revenues.
The Finance Minister also pledged to make every effort to reduce the budget deficit to 8.8% in 2022, 6.1% in 2024, and 4.8% in 2025 via methods of solid expenditure management, increasing government revenue, and restructuring loss-making public enterprises.