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2025 Vote on Account’s revenue gains may fall short of primary spending increase
On 6 December, Parliament approved the 2025 Vote on Account, allocating funds for the first four months of the year. To understand what a Vote on Account entails, read our blog here. For January to April 2025, primary expenditure—which includes both recurring and capital spending but excludes interest payments—is budgeted at LKR 1,425 billion. This breaks down into LKR 425 billion for capital projects and LKR 1,000 billion for recurrent expenses. The government expects revenue of LKR 1,600 billion, resulting in a primary balance (revenue minus primary expenditure) of LKR 175 billion. Compared to 2024, both expenditure and revenue have increased significantly. Primary expenditure for 2025 is projected to be LKR 454 billion (47%) higher than the LKR 971 billion spent during an average four-month* period in 2024. However, revenue is expected to grow by only LKR 400 billion (33%). This indicates that the primary balance expected for 2025 could be lower than what is achieved in 2024, extrapolating from the first four months of revenue and expenditure budgeted in the vote on account.
Featured Insight
2025 Vote on Account’s revenue gains may fall short of primary spending increase
On 6 December, Parliament approved the 2025 Vote on Account, allocating funds for the first four months of the year. To understand what a Vote on Account entails, read our blog here. For January to April 2025, primary expenditure—which includes both recurring and capital spending but excludes interest payments—is budgeted at LKR 1,425 billion. This breaks down into LKR 425 billion for capital projects and LKR 1,000 billion for recurrent expenses. The government expects revenue of LKR 1,600 billion, resulting in a primary balance (revenue minus primary expenditure) of LKR 175 billion. Compared to 2024, both expenditure and revenue have increased significantly. Primary expenditure for 2025 is projected to be LKR 454 billion (47%) higher than the LKR 971 billion spent during an average four-month* period in 2024. However, revenue is expected to grow by only LKR 400 billion (33%). This indicates that the primary balance expected for 2025 could be lower than what is achieved in 2024, extrapolating from the first four months of revenue and expenditure budgeted in the vote on account.
Featured Insight
2025 Vote on Account’s revenue gains may fall short of primary spending increase
On 6 December, Parliament approved the 2025 Vote on Account, allocating funds for the first four months of the year. To understand what a Vote on Account entails, read our blog here. For January to April 2025, primary expenditure—which includes both recurring and capital spending but excludes interest payments—is budgeted at LKR 1,425 billion. This breaks down into LKR 425 billion for capital projects and LKR 1,000 billion for recurrent expenses. The government expects revenue of LKR 1,600 billion, resulting in a primary balance (revenue minus primary expenditure) of LKR 175 billion. Compared to 2024, both expenditure and revenue have increased significantly. Primary expenditure for 2025 is projected to be LKR 454 billion (47%) higher than the LKR 971 billion spent during an average four-month* period in 2024. However, revenue is expected to grow by only LKR 400 billion (33%). This indicates that the primary balance expected for 2025 could be lower than what is achieved in 2024, extrapolating from the first four months of revenue and expenditure budgeted in the vote on account.
Featured Insight
2025 Vote on Account’s revenue gains may fall short of primary spending increase
On 6 December, Parliament approved the 2025 Vote on Account, allocating funds for the first four months of the year. To understand what a Vote on Account entails, read our blog here. For January to April 2025, primary expenditure—which includes both recurring and capital spending but excludes interest payments—is budgeted at LKR 1,425 billion. This breaks down into LKR 425 billion for capital projects and LKR 1,000 billion for recurrent expenses. The government expects revenue of LKR 1,600 billion, resulting in a primary balance (revenue minus primary expenditure) of LKR 175 billion. Compared to 2024, both expenditure and revenue have increased significantly. Primary expenditure for 2025 is projected to be LKR 454 billion (47%) higher than the LKR 971 billion spent during an average four-month* period in 2024. However, revenue is expected to grow by only LKR 400 billion (33%). This indicates that the primary balance expected for 2025 could be lower than what is achieved in 2024, extrapolating from the first four months of revenue and expenditure budgeted in the vote on account.
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Insights and analysis on the 2023 IMF programme.
மே மாதத்திற்குள் சர்வதேச நாணய நிதியத்தின் (IMF) 29 உறுதிமொழிகளை இலங்கை நிறைவேற்றியதுடன், அதில் 3ஐ நிறைவேற்றத் தவறியுள்ளது
சர்வதேச நாணய நிதிய (IMF) திட்டத்தின் கீழ் கண்காணிக்கக்கூடிய 100 உறுதிமொழிகளில் 29 ஐ இலங்கை பூர்த்தி செய்துள்ளதுடன், 2023 மே மாத இறுதிக்குள் அவற்றின் மூன்று உறுதிமொழிகளை நிறைவேற்ற தவறியுள்ளதாக வெரிட்டே ரிசர்ச்சின் 'IMF கண்காணிப்பான்...
பி.எஃப். வயரில் இணைப்பிலிருந்து
Source:
Daily Mirror
Reform delays could suspend IMF programme, jeopard...
The Bloomberg Intelligence report warns that Sri Lanka's economic recovery is at risk if reforms stall after the presidential elections, potentially leading to a suspension of the IMF program. It emphasizes the need...
மேலும் வாசிக்க
Source:
The Morning
SL needs to bring down debt below IMF target
Shanta Devarajan stresses the necessity for Sri Lanka to surpass the IMF's debt-to-GDP target of 95%, citing potential economic shocks like Middle East conflicts. Achieving a lower ratio requires boosting the growth rate,...
மேலும் வாசிக்க
Source:
The Morning
Proposed NY legislation to delay restructuring
The IMF warns against proposed New York legislation that aims to change the process of sovereign debt restructuring, expressing concerns about introducing uncertainty and complexity. The l...
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நுண்ணறிவு International Monetary Fund
இலங்கையின் சர்வதேச நாணய நிதிய (IMF) வேலை...
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Sri Lanka met 46 IMF commitments and fai...
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Sri Lanka verifiably met 41 of the 73 trackable commitments that were due for completion by end-O...
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விவரணம்
சர்வதேச நாணய நிதியத்தின் உறுப்புரை IV அறிக்கை – மு...
சர்வதேச நாணய நிதியத்தின் ஒப்பந்தத்தின் உறுப்புரை IVன்
மேலும் வாசிக்க
The Best Next Step for Improving Tax Collection
This article was compiled by Sumini Siyambalapitiya. Sumini Siyambalapitiya is a former Lead Analyst in the Economics team of Verité Research and se...
மேலும் வாசிக்க
VAT revenue collection: Maldives highest, Sri Lank...
Sri Lanka has the lowest tax revenue collected through Value Added Tax (VAT) in South Asia while Maldives with a lower tax rate collects nearly 5 times more through its Goods and Services Tax (GST).
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