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State revenue reaches pre-pandemic levels in first five months

29 August 2022 05:51 am - 2     - {{hitsCtrl.values.hits}}

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State- revenue reached pre-pandemic levels in the first five months of the year by recording 17.5 percent year-on-year (YoY) growth in the period, according to the Central Bank data.

In the five-month period, the government revenue rose to Rs.811.9 billion from Rs.630.1 billion a year ago supported by increases in tax rates and one-off retrospective surcharge tax on large companies. The non-tax revenue nearly doubled to Rs.101.3 billion from Rs.60.8 billion a year ago.

Meanwhile, the government expenditure was up by 14.5 percent YoY to Rs.1.45 trillion with recurrent expenditure rising to Rs.1.27 trillion from Rs.1.1 trillion a year ago.


Consequently, the fiscal deficit expanded by nearly 11 percent in the period.
According to the government’s latest projections, state revenue is expected to increase to 9.1 percent of GDP this year from 8.6 percent last year, while state expenditure is expected to reach 18.9 percent of GDP from 16.2 percent last year. The budget deficit Is expected to come down to 9.9 percent of GDP this year from 12.2 percent last year.


After May this year, the government increased the rates of several key taxes including income taxes, VAT, telecommunications levies and betting and gaming levies. In addition, a new 2.5 percent tax on importers, manufacturers, service providers, wholesalers and retailers has also come into effect.
However, the government increased its expenditure by further 20 percent to Rs. 4.67 trillion in an Amendment to the Appropriation Bill for 2022, approved in parliament early this month.

According to Publicfinance.lk, the government requires a 107 percent increase from its 2021 revenue levels to achieve the approved budget deficit for the year.

 


  Comments - 2

  • No more tax man Monday, 29 August 2022 08:45 AM

    Government should collect taxes and use to for developments. But not to maintain SOEs

    sacre blieu Monday, 29 August 2022 10:02 AM

    However, the money printing is increasing unabated and reaching disastrous volumes. Is the Sri Lanka rupee never to see even signs of strengthening. The unofficial economy and wealth is huge and appears to be conveniently ignored by authorities. Tax raids will not be a success, because those responsible are a big part of the problem. Very soon we may have to carter a wheel barrow full of money to buy a loaf of bread.,AS a bankrupt country and struggling several years to overcome the issue, how come we are one of the highest ownership of luxury vehicles and SUV's, even super value special sports vehicles. Look at the extraordinary luxury flats and houses,priced in many millions. When we have an illicit government issuing illegal orders, will we ever survive.


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