Government Expenditure Exceeds Revenue, But Development Spending Remains Low at 23%

The government’s expenditure has surpassed revenue in the first eight months of the 2024/25 fiscal year, while development spending remains sluggish, standing at just 23% of the allocated budget.

According to data from the Office of the Financial Comptroller General, as of March 13, the government had collected Rs 738.82 billion in revenue, while total spending reached Rs 839.36 billion, resulting in a deficit of Rs 153.47 billion.

Despite the overall increase in expenditure, capital spending has been notably low. Of the Rs 352.35 billion allocated for development projects, only Rs 82.34 billion (23.37%) has been utilized so far.

The government had unveiled a budget of Rs 1.86 trillion for the current fiscal year. By mid-March, 45.12% of this budget—equivalent to Rs 839.36 billion—had been spent. Within this, Rs 584.13 billion (51.21%) was utilized for operational expenses, while Rs 172.89 billion (47.07%) went toward financial management.

Revenue collection also remains below target. The government has achieved 50.2% of its Rs 1.47 trillion annual revenue goal, raising Rs 738.82 billion so far. Tax revenue accounted for Rs 638.79 billion (49.74% of the target), while non-tax revenue stood at Rs 81.54 billion (60.36% of the target).

Foreign aid mobilization has been particularly weak, with only Rs 9.16 billion—17.51% of the Rs 52.32 billion target—received in foreign grants so far.