Sri Lanka Government Treasury’s cash flow has been severely affected as expenditure outpaced revenue growth resulting in debt increasing beyond already elevated levels, Finance Ministry‘s recent report divulged
The Government is compelled to borrow an average sum of Rs10.50 billion daily to meet daily expenses while collecting a revenue of Rs.6.53 billion and spending Rs.17.05 billion per day
Cash inflows to the Treasury by way of revenue and other receipts amounted to Rs.1,361.9 billion, in the first nine months of 2022 as against the estimation of Rs. 1,557.3 billion, achieving 87.5 per cent from the estimated amount, a fiscal management report revealed.
This was an increase of 33.4 per cent, compared to Rs. 1,020.6 billion in the same period of 2021.
Meanwhile, cash outflow for both recurrent and public investment amounted to Rs. 2,743.0 billion in the first nine months of 2022, which is a 16.7 per cent increase compared to Rs.2,350.9 billion over the same period of 2021.
Net cash deficit as at September 30, 2022 was Rs. 1,381.1 billion, an increase of 3.8 per cent compared to Rs. 1,330.3 billion as at end September 2021 mainly due to the increase in the operational expenditure and public investment by 10.4 per cent and 54.9 per cent, respectively, the report indicated.
However, a decrease in closing negative cash balance up to Rs. 48.2 billion as at September 30, 2022 from Rs. 856.8 billion as at September 30, 2021, has been recorded as a result of the increase in cash inflows including the increase in net borrowing during the period, it added.
(Bandula)
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