The government had projected total revenue of Rs. 4,107 billion for 2024, with Rs. 3,820 billion anticipated from tax collections. However, actual revenue figures from January to September 2024 reveal a shortfall, according to Professor Wasantha Atukorale, Director of the Postgraduate Department of Humanities and Social Sciences at the University of Peradeniya and an expert in Economics.
During this period, the government received Rs. 2,918 billion in total revenue, of which Rs. 2,688 billion came from taxes. This marks a significant increase of approximately 38% in total revenue compared to the same period in 2023, with tax revenue alone increasing by around 39%.
On average, monthly revenue from January to September amounted to Rs. 324 billion. If this trend continues through the remaining three months of the year, the government is projected to achieve an annual revenue of Rs. 3,891 billion—falling short of the initial forecast by Rs. 215 billion.
Professor Atukorale also highlighted the disparity between government income and expenditure. The government’s average monthly expenditure for 2024 has been approximately Rs. 433 billion, against an average monthly income of Rs. 324 billion. This gap has necessitated borrowing an estimated Rs. 108 billion per month to meet state expenses.
Looking ahead, the professor emphasized the need for decisive measures to address the fiscal deficit in the 2025 budget. Without such steps, the government’s reliance on borrowing could escalate further.
Reported by: Premalal Wijeratne
