ECONOMYNEXT – Sri Lanka is seeking parliament’s permission to increase 2021 spending by 200 billion rupees, which can be done within the borrowing limit already approved for the year, Trade Minister Bandula Gunewardene said.
The extra spending is about 1.2 percent of gross domestic product.
Before the supplementary estimate the 2021 budget deficit was projected at 9.5 percent of GDP.
If here is no increase in revenue, the deficit could go up to 10.7 percent of GDP.
The government wanted to spend an extra 131 billion rupees in current expenditure including due to Coronavirus and capital spending of 69 billion rupees, Minister Gunewardane said.
Out of a 50 billion rupees in a contingency fund 43 billion rupees had already been spent, he said.
Sri Lanka first projected current spending of 2,534 billion rupees of 15.4 percent of GDP, to which another 0.8 percent would be added.
Capital and net spending was projected at 1,060 billion rupees or 6.4 percent.
The deficit was projected at based on 9.5 percent of GDP for 2021 after output for 2021 was revised down.
Minister Gunewardene said there was space in the already approved limit to borrow.
Given below is the 2021 budget before the supplementary estimate.