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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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Government revenue set to rise by LKR 922 billion in 2025— What’s driving the increase?
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Source:
Economy Next
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Source:
Daily Ft
Harsha proposes new PAYE tax scheme focused on pro...
SJB MP Dr. Harsha de Silva has proposed an alternative PAYE taxation system to address the emigration of professionals from the country. The proposal, developed after discussions with the Professionals Trade Union Alliance, aims to create a...
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Source:
DailyFT
Mixed trends in manufacturing and service sectors...
The manufacturing sector displays subdued performance across all sub-indices, particularly affecting the textile and apparel segment due to a lack of new orders. Conversely, the service sector showcases promising trends with increased new bu...
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விவரணம்
2022ல் அரசுக்குச் சொந்தமான நிறுவனங்களின் நட்டங்கள்...
2022ம் ஆண்டின் முதல் நான்கு மாதங்களில் அரசுக்குச் சொந்தமான நிறுவனங்களின் மொத்த நட்டமானது ரூ.860 பில்லியன் ஆகும். இது அரசுக்குச் சொந்தமான நிறுவனங்களின் 2021ம் ஆண்டுக்கான வருடாந்...
மேலும் வாசிக்க
Vote on Account 2025: Which ministries got the hig...
On 6 December, Parliament approved the 2025 Vote on Account (VOA) without a vote, allocating funds for government spending in the first four months of the year. T...
மேலும் வாசிக்க
புதிய செலவினம் மற்றும் நிவாரணங்களை குறைநிரப்பு வரவ...
2024 டிசம்பர் 05 ஆம் திகதியன்று, அரசாங்கம் ஆண்டிற்கான 219.4 பில்லியன் ரூபா பெறுமதிமிக்க குறைநிரப்பு மதிப்பீடுகளை முன்வைத்தது, இது 2024 ஆம் ஆண்டின் அசல் வரவு செலவுத் திட்டத்தில் சேர்க்கப்படவில்லை. எதிர்பாராத அவசரகால செலவுகளை நிவர்த்தி ச...
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