Sri Lanka govt revenue nears 15-pct of GDP
ECONOMYNEXT – Sri Lanka’s state revenue has been improving after reforms by the new government and is expected to come closer to 15% of GDP, Finance Minister Mangala Samaraweera told parliament.
Reforms helped reverse the decades-long downward spiral of government revenue which increased up to 14.2% of GDP in 2016 from 11.5% of GDP in 2014, marking a growth of 41% in absolute terms, he said while presenting the government budget for 2018.
“In 2017, government revenue, I am certain, will come closer to 15% of GDP, ensuring a revenue growth of 13% in 2017 over 2016.”
Revenue reforms in all areas including Inland Revenue, Customs, Excise and others should raise government revenue closer to 20% of GDP over the medium-term.
As revenue increases, and expenditure remains well targeted and rationalized, the overall budget deficit is expected to reduce up to 3.5% of GDP by 2020, Samaraweera said.
(COLOMBO, November 09, 2017)