The overall Budget deficit in the first quarter has expanded by 21% to Rs. 483.3 billion from a year ago.

As per latest Central Bank data, during the three months ending March 2022, Government revenue increased to Rs. 446.8 billion compared to Rs. 365.4 billion recorded in the corresponding period of 2021.

Total expenditure and net lending increased to Rs. 931.2 billion compared to Rs. 765.5 billion recorded in the corresponding period of 2021.

CBSL also said during the three months ending March 2022, domestic financing increased to Rs. 641.2 billion compared to Rs. 467.7 billion in the corresponding period of 2021. Foreign financing recorded a net repayment of Rs. 157 billion during the period from January to March 2022, compared to a net repayment of Rs. 68.1 billion a year ago.

Prime Minister Ranil Wickremesinghe earlier this month told Parliament that the estimated Government expenditure for this year is Rs. 3.3 trillion. However, due to the increase in interest rates and additional expenditure of the former Government, the total Government expenditure is Rs. 4 trillion. The budget deficit for the year is forecast to be Rs. 2.4 trillion of 13% of GDP. In 2021 the deficit was 12%.

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