In the first 11 months of 2023, the government expenditure has increased to 4,792 billion rupees, and in the same period of 2022, the government expenditure is 3,411 billion rupees, indicating that the expenditure has increased by 1,381 billion rupees in 2023, according to the Department of Economics and Statistical Studies of Peradeniya University. Professor Wasantha Athukorala told ‘Mawrata’.
He also mentioned that these facts have been disclosed based on Central Bank reports.
Recurring expenses have increased the most.
During the relevant period, in 2022, the government’s capital expenditure was 466 billion rupees, and in 2023, it shows a marginal increase to 499 billion rupees.
But the recurring expenses were 2,845 billion rupees in the relevant 11 months of 2022, and it has increased to 4,293 billion rupees in 2023.
It is stated that the relevant documents have confirmed that the recurring expenses are higher by 1,345 billion rupees.
But the government’s income has increased by only 851 billion rupees during this period.
The professor also points out that the budget deficit will increase from 1,601 billion rupees to 2020 during this period due to the increase in expenditure over government income.
The increase in government expenditure has been mainly influenced by the rapid increase in the amount of interest paid for loans during this period.
Professor Wasantha Athukorala points out that due to this situation, the economy will become unstable in the future and the amount of taxes will have to be increased.