COLOMBO – Sri Lanka is targeting a budget deficit of 8.9% of gross domestic product in 2021, with revenue recovery expected from a steep dip in 2020 to levels seen in 2019, Prime Minister and Finance Minister Mahinda Rajapaksa said.
The country is expecting revenues of Rs 2019 billion, including Rs 69 billion of provincial council revenues. Expenditure is planned for Rs 2,534 billion with no salary hikes or major subsidies given. Capital expenditure is set at Rs 1,070 billion.
Rajapaksa said total spending would be Rs 3,525 billion in total and the deficit would be Rs 1,564 billion or around 9% of GDP.
The 2020 deficit is listed as 7.9%, which is controversial as it departs from the previous basis of accounting for the deficit.
Sri Lanka is expecting to borrow Rs 1,486 billion from domestic markets and Rs 99 billion from foreign sources in 2020. A Rs 225 billion net payback is also planned for the year amid a repayment of a sovereign bond.
-economynext.com