Public Finance Statistics: Consolidated General Government, July 2024 – June 2025
Highlights
Revenue
1. Revenue grew by a robust 15.7% to reach around Rs 197.2 billion in 2024/2025, up from Rs 170.4 billion in the previous fiscal year. This performance resulted in a higher revenue-to-GDP ratio, rising from 25.6% to 27.5%.
2. Tax revenue served as the principal driver of this expansion, contributing nearly 83.0% of the overall increase in revenue. Within this category, Value-Added Tax (VAT), taxes on income and profits, and excise duties remained the primary streams, collectively contributing a substantial Rs 133.0 billion to government receipts. This demonstrates strong tax buoyancy, with total tax receipts increasing at nearly twice the rate of nominal GDP growth.
Expenditure
3. Expenditure reached Rs 273.2 billion in 2024/2025, representing an increase of 20.5% from Rs 226.7 billion in the fiscal year 2023/2024. Current operating costs constituted the largest share of spending at Rs 262.1 billion, led primarily by outlays for social benefits and employee compensation. Meanwhile, the consumption of fixed capital accounted for Rs 10.3 billion. Consequently, the expenditure-to-GDP ratio climbed from 34.1% to 38.1%.
4. Despite high recurrent spending, the government continued to invest in vital physical and non-produced assets, albeit at a slower pace. Gross investment in non-financial assets declined slightly from Rs 11.9 billion in 2023/2024 to Rs 11.1 billion in 2024/2025. Nevertheless, net acquisition of these assets remained positive at approximately Rs 0.8 billion in 2024/2025, indicating a continued expansion of the government's stock of non-financial assets.
5. The government prioritized its allocation strategy by directing 61.8% of total expenditure towards social development and public well-being, specifically social protection, education, health, environmental protection, housing and community amenities. Concurrently, 38.2% was allocated to general public services, economic affairs, and security, maintaining a balanced approach that supports both social welfare and economic resilience.
Operational Performance
6. Although revenue growth remained robust in 2024/2025, it was outpaced by a sharper rise in current expenses. Consequently, the gross operating balance shifted from a deficit of Rs 44.3 billion in 2023/2024 to a larger deficit of Rs 64.9 billion in 2024/2025. As a ratio of GDP, the gross operating deficit widened from 6.7% to 9.1% over the same period. After accounting for the consumption of fixed capital, the net operating balance expanded by 38.3% to reach a deficit of Rs 75.3 billion in 2024/2025.
Overall Fiscal Balance (Net Lending/Net Borrowing)
7. The overall fiscal balance, most accurately captured by net lending/net borrowing, recorded a deficit of Rs 76.1 billion in 2024/2025 compared to a deficit of Rs 56.2 billion in the preceding fiscal cycle. Relative to GDP, the fiscal deficit widened from 8.5% to 10.6%.
8. Interest costs alone accounted for one-quarter (25.1%) of this overall gap in 2024/2025. Excluding interest payments on debt, the primary net lending/net borrowing balance registered a deficit of Rs 57.0 billion, compared to the overall fiscal deficit of Rs 76.1 billion.
Government Financing and Debt
9. The government maintained a net deficit during the year under review, requiring additional financing to bridge the gap between total revenue and total expenditure. This deficit was funded primarily through the issuance of Rs 62.6 billion in domestic debt securities, supplemented by Rs 10.1 billion in external loans.
10. The continued fiscal deficits and the associated borrowing requirements were reflected in a higher level of general government debt. According to the Ministry of Finance, the debt stock grew by 16.0%, expanding from Rs 491.9 billion at the end of 2023/2024 to Rs 570.5 billion at the end of 2024/2025. Concurrently, the debt-to-GDP ratio climbed from 74.0% to 79.6%, highlighting the impact of sustained deficit financing on the national debt.
11. Interest payments on debt represented a notable component of government expenditure in 2024/2025. Public debt transactions, consisting entirely of interest payments, amounted to Rs 19.1 billion, representing 7.0% of total expenditure. This means that for every Rs 100 spent by the government, around Rs 7.0 was used to service its interest obligations on outstanding debt.
Total Change in Government Net Worth
12. The net worth of the consolidated general government declined by Rs 80.0 billion in 2024/2025. This erosion was primarily driven by a substantial net operating deficit of Rs 75.3 billion, alongside a Rs 4.7 billion reduction from other economic flows. While favourable valuation effects generated significant gains on financial assets, these were ultimately eclipsed by the combined impact of the operating deficit and expanding liabilities.
13. Specifically, other economic flows reduced the government's net financial worth by Rs 5.7 billion, as liabilities grew faster than financial assets. This was partly offset by a Rs 1.0 billion holding gain in non-financial assets, resulting in an overall reduction of Rs 4.7 billion from other economic flows. Together with the net operating deficit of Rs 75.3 billion, this led to a total decline in net worth of Rs 80.0 billion.
29 September 2026
