Tax Revenue Fixed At 13.6% of GDP

Government’s total revenue and grants last year were Rs. 835,129 million (14.9% of GDP) according to provisional estimates. This compares with the previous year’s figure of Rs. 725, 566 million (15% GDP), a marginal 0.1% GDP decrease year on year (YoY).
However approved estimates were 0.4% GDP more, at Rs. 840,716 million (15.3% GDP). Approved estimates for the current year (2011) are Rs. 985, 920 million (15.6% of GDP).
Meanwhile expenditure and lending minus repayments last year were Rs. 1,280,205 million (22.9% of GDP). Approved estimates for the year however were Rs. 1,279, 553 million (23.3% of GDP).
Approved expenditure for the current year is Rs. 1,419,664 million (22.4% of GDP).
Current expenditure only for last year was Rs. 928,339 million (16.9% of GDP). This compares favourably with the 2009 figure of Rs. 879,575 million (18.2% of GDP). Approved current expenditure for the present year is Rs. 1,017,155 million (16.1% of GDP).
Total revenue only for last year according to provisional figures was Rs. 818,220 million (14.6% of GDP). In 2009 this figure was Rs. 699,644 million (14.5% of GDP). Total revenue estimates for the current year is Rs. 963,320 million (15.2% of GDP).
Tax revenue last year comprised 13% of GDP (Rs. 725,671 million) according to provisional estimates. Tax revenue in 2009 was 12.8% of GDP (Rs. 618,933 million). However approved tax revenue estimates for last year were 13.3% of GDP (Rs. 728,744 million). Approved estimates for the current year are13.6% of GDP (Rs. 861,943 million).
Grants component only which comprised Rs. 25,922 million (0.5% of GDP) of the total revenue and grants figure in 2009 slid to Rs. 16,909 million (0.3% of GDP) last year. However, grants estimates for last year were an optimistic Rs. 23,200 million (0.4% of GDP). Grants estimates for the current year are Rs. 22,600 million (0.4% of GDP).
Meanwhile capital and net lending last year according to provisional figures was Rs. 343,111 million (6.1% of GDP). However, approved estimates for the year in question was Rs. 351,214 million (6.4% of GDP). Capital and net lending in 2009 was Rs. 322,352 million (6.7% of GDP). Approved estimates for the present year is Rs. 402,509 million (6.4% of GDP).
In the capital and net lending figure, public investments last year were Rs. 343,111 million (6.1% of GDP). However the approved figure was much more, at Rs. 361,214 million (6.6% of GDP).
In capital and net lending, public investment in 2009 was Rs. 330,448 million (6.8% of GDP). Approved estimates for this year is Rs. 413,546 million (6.5% of GDP).
Meanwhile non tax revenue last year was Rs. 92,549 million (1.7% of GDP) according to provisional figures. However approved estimates for the year was less, at Rs. 88,772 million (1.6% of GDP). Approved estimates of non tax revenue for the present year is Rs. 10,377 million (1.6% of GDP). Non tax revenue in 2009 was Rs. 80,711 million (1.7% of GDP).
The budget deficit last year was Rs. 445,076 million (7.9% of GDP) as opposed to Rs. 476,361 million (9.9%of GDP) the previous year. Last year’s budget deficit was financed by foreign financing of Rs. 243,778 million (4.4% of GDP) and domestic financing of Rs. 201,288 million (3.6% of GDP). Foreign financing included rupee denominated Treasury bonds and bills issued to foreign investors, the Sri Lankan diaspora and migrant workers.
Domestic financing comprised market borrowing of Rs. 191,991 million (3.4% of GDP) and non market borrowings of Rs. 9,289 million (0.2% of GDP). Domestic financing comprised non bank borrowings of Rs. 193,891 million (3.5% of GDP), bank borrowings of a negative Rs. 1,892 million; monetary authority (which at times forwards the Treasury printed money to help bridge the budget deficit) a negative Rs.32,112 million (0.6% of GDP) and commercial banks: Rs. 30,220 million (0.5% of GDP).
In 2009, the budget deficit was Rs. 476,361million(9.9% of GDP). That was met by foreign financing of Rs. 230,807 million (4.8% of GDP) and domestic financing of Rs. 245,554 million (5.1% of GDP).
Domestic financing comprised market borrowings of Rs. 234,274 million (4.9% of GDP) and non market borrowings: Rs. 11,280 million (0.2% of GDP).
Market borrowings comprised non bank borrowings: Rs. 185,247 million (3.8% of GDP) and bank borrowings of Rs. 49,027 million (1%of GDP). Other borrowings comprised monetary authority: a negative Rs. 109,241 million (-2.3% of GDP) and commercial banks: Rs. 158,268 million (3.3% of GDP).
This year, the deficit is estimated at Rs. 433,744 million (6.8% of GDP). That is planned to be bridged by foreign financing: Rs. 143,750 million (2.3% of GDP) and domestic financing: Rs. 289,994 million (4.6% of GDP).
Domestic financing is to comprise non bank borrowings: Rs. 247,994 million (3.9% of GDP) and bank borrowings: Rs. 42,000 million (0.7% of GDP).
Meanwhile, as per approved estimates for last year, the budget deficit had been set at Rs. 438,837 million (8% of GDP). It was to have had been met by foreign financing: Rs. 158,000 million (2.9% of GDP) and domestic financing: Rs. 280,837 million (5.1% of GDP).
Domestic financing was to have had comprised non bank borrowings: Rs. 235,837 million (4.3% of GDP) and bank borrowings: Rs. 45,000 million (0.8% of GDP). (Source: Central Bank of Sri Lanka 2010 Annual Report)