ECONOMYNEXT – Sri Lanka’s budget deficit expanded to 684 about 4.4 percent of estimated gross domestic product by July 2019, up from 3.2 percent in 2019, as revenues were hit in the wake of a currency fall last year, official data shows.
Sri Lanka budgeted a 4.4 percent of GDP deficit (685 billion rupees) for the full year 2019.
Total revenues fell 4.4 percent from a year earlier to 1,031.9 billion rupees to 6.7 percent of GDP from 7.5 percent a year earlier, and tax revenues fell to 944.4 billion rupees from 983.3 billion rupees a year earlier, fiscal data published by the central bank showed.
But current spending grew 10.2 percent to 1,343.7 billion rupees or to 8.7 percent of GDP from 8.4 percent, leaving a revenue deficit of 311.8 billion rupees or 2.0 percent of GDP, up from 0.9 percent last year.
Capital expenditure grew 13 percent to 373.4 billion rupees or 2.4 percent of GDP, leaving a total deficit of about 4.4 percent of GDP.
About 3.7 percent of the deficit (about 570 billion rupees) was financed domestically and 1.3 percent (about 187 billion rupees) from foreign sources.