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2023 Budget’s expenditure limit overshot by LKR 104 billion

The Ministry of Finance Annual Report, released on 31st May 2024, shows that in 2023, the Government of Sri Lanka exceeded its total expenditure by LKR 104 billion. The total expenditure budgeted based on the government’s revised estimate in 2023 was LKR 5,253 Bn. However, the government spent LKR 5,357 Bn in 2023, which is 2% above the budgeted figure.    

This overspending was primarily driven by increased expenditure on interest payments amounting to LKR 263 billion, 12% above the revised estimate for 2023. Public investments increased by LKR 106 billion, and spending on goods and services rose by LKR 52 billion. Conversely, subsidies and transfers decreased by LKR 39 billion, and salaries and wages fell by LKR 47 billion. 

Exhibit 1: Comparison of Revised Estimate and Actual expenditure for the year 2023  

Expenditure  

2023 Revised Estimate 

2023

Actual 

Expenditure  

 

Deviation 

(LKR Bn) 

Deviation 

(%) 

Recurrent Expenditure 

4,471  

4,700  

229  

5% 

Salaries and Wages 

986  

940  

(47) 

-5% 

Goods and Services  

248  

300  

52  

21% 

Interest payments

2,193  

2,456  

263  

12% 

Subsidies and Transfers  

1,044  

1,005  

(39) 

-4% 

Capital Expenditure and Net Lending  

782  

657  

(125) 

-16% 

Public Investments  

827  

933  

106  

13% 

Other  

(45) 

(276) 

(231) 

513% 

Total Expenditure 

5,253  

5,357  

104  

2% 

Note: Exp – Government Expenditure. Expenditure classifications in the budget estimates differ from those in the MoF Annual Report. Hence, revised estimates from Table 5.6 of the MoF Annual Report '23 was used for this analysis instead of the original approved budget estimates. Other” mainly includes Net lending

 

Source

Ministry of Finance FINAL BUDGET POSITION REPORT (ANNUAL REPORT) 2023 at https://www.treasury.gov.lk/api/file/ad12f7fa-d2db-43d4-9daa-9270ee7b7cac [last accessed 8 August 2024].  

2024-08-14
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