Government revenue increased in 2008 from the previous year, attributed to higher earnings from income tax, taxes on domestic goods and services and taxes on external trade.
The total revenue for the government in 2008 increased to Rs.663.5 billion from Rs.571.5 billion in 2007 although the budget deficit increased to Rs.370 billion from Rs.314 billion the previous year. According to the Financial Statements for the year ended 31st December 2008 released by the Department of State Accounts to Parliament, tax revenue for the period under review increased by Rs.585 billion in 2008 from Rs.509 billion in 2007.
The total recurrent expenditure including wages, salaries and employment benefits, goods and services, interest payments and subsidies, grants and transfers increase went up to Rs.736 billion in 2008 from Rs.614 billion the previous year.
The financial statements show that the budget deficit was financed mostly through domestic borrowings, amounting to Rs.250 billion, up from Rs.156 billion in 2007. Net foreign borrowings decreased in 2008 toRs.26 billion from Rs.105 billion in 2007 while total foreign financing also decreased to Rs.48 billion in 2008 from Rs.123 billion the previous year.
According to the financial statements, the equity (net worth) of commercial public corporations as at January 1st 22008 amounted to Rs.528 billion whereas the corporations were valued at Rs.468 billion as at January 1st2007.
The Ceylon Electricity Board (CEB) had a net worth of Rs.275 billion in 2008, followed by the National Water Supply and Drainage Board at Rs.92 billion and the Sri Lanka Ports Authority (SLPA) at Rs.78 billion. The Bank of Ceylon (BOC) had a net worth of Rs.21 billion while the Ceylon Petroleum Corporation (CPC), People’s Bank and National Savings Bank had a net worth of approximately Rs.13 billion. |
E-mail