​

Public Finance Statistics: Consolidated General Government, July 2023 – June 2024

Highlights

Operational Performance

1. 1.  Public finances remained in deficit for the fiscal year ending June 2024. The gross operating balance, which represents the gap between revenue and recurrent expenses, recorded a current deficit of Rs 44.3 billion after a shortfall of Rs 23.3 billion in 2022/2023. As a ratio to GDP, the deficit increased from 3.8% to 6.6% between the two fiscal years. This was due to expenses outpacing revenue. 
   
   Revenue
2. 2.  Revenue grew by 8.1% to reach Rs 170.4 billion, up from Rs 157.7 billion in the year ended June 2023.
3. 3.  Taxes (Rs 142.6 billion) remained the primary source of government revenue in 2023/2024, representing 83.6% of total revenue. Value-Added Tax (Rs 53.2 billion), corporate and business taxes (Rs 28.7 billion) and excise duties (Rs 21.1 billion) were the largest tax revenue sources for the government, highlighting a dependence on consumption-based taxation. Other significant sources included personal income tax (Rs 13.4 billion) and taxes on financial and capital transactions (Rs 9.4 billion).
4. 4.  Though still smaller than tax revenue, social contributions (Rs 12.2 billion) formed a vital part of government income, accounting for 7.1% of total revenue in 2023/2024. Most social contributions came from social security (Rs 11.8 billion), with employer contributions (Rs 7.6 billion) being the main source of social security funding.
5. 5.  Grants to the government declined sharply from Rs 2.1 billion in the fiscal year ended June 2023 to Rs 0.7 billion in the fiscal year ended June 2024, reflecting reduced donor and international support. Grants represented a relatively small portion (0.4%) of the government's overall revenue and were largely capital in nature (77.1%).
6. 6.  The government collected Rs 14.9 billion in other revenue, making up nearly 9% of total revenue. Property income (Rs 7.0 billion) stood as the leading contributor of other revenue, while sales of goods and services (Rs 5.9 billion) remained a stable source of income. Although small in financial terms at just 3.2% of other revenue, fines and penalties served as an important tool for enforcing compliance. 
   
   Expenditure
7. 7.  Expenditure (Rs 226.7 billion) skyrocketed in 2023/2024, largely driven by recurrent expenses (94.7%).
8. 8.  Recurrent expenses attained about Rs 214.7 billion, representing an increase of 18.7% from Rs 181.0 billion in 2022/2023. The growth in expenses was primarily fuelled by increases in transfers (Rs 13.9 billion) and social benefits (Rs 13.1 billion), accounting for 79.8% of the total increase in recurrent expenses.
9. 9.  Despite heavy recurrent obligations, the government still allocated resources to the acquisition of physical and non-produced assets, though at a slower pace. Gross investment in non-financial assets amounted to Rs 11.9 billion compared to Rs 13.4 billion in 2022/2023. The bulk of this investment (93.1%) was directed towards fixed assets.
10. 10.  The government prioritised spending in many areas. It directed over half of its expenditure (53.4%) towards social priorities, namely social protection, education and health. At the same time, significant allocations were made to general public services, economic affairs and security, ensuring a balanced approach to both social welfare and economic resilience. Spending on environmental protection was relatively low despite growing ecological concerns.
11. 11.  Debt repayments continued to consume a large portion of the government's budget. Public debt transactions amounted to Rs 15.3 billion, representing 6.7% of total expenditure. In other words, for every Rs 100 spent by the government, around Rs 6.7 went towards servicing its debt. 
    
    Overall Fiscal Balance
12. 12.  The overall fiscal balance, the most appropriate budget balance measure often referred to as 'net lending/net borrowing', showed a negative balance in 2023/2024 which placed the government firmly in a borrowing position.
     
13. 13.  The government recorded a deficit of Rs 44.3 billion from its day-to-day operations. After factoring in investment of Rs 11.9 billion in non-financial assets, the gap between revenue and expenditure widened to a net borrowing requirement of Rs 56.2 billion, up from Rs 36.6 billion in the fiscal year 2022/2023. As a share of GDP, the overall fiscal deficit or headline deficit expanded from 6.0% to 8.4%. 
    
    Government Financing
14. 14.  Financing activities led to a net outflow of Rs 56.2 billion, consistent with the recorded fiscal deficit.
15. 15.  The government did not finance the fiscal deficit wholly through borrowing but pursued a blended strategy. It primarily used domestic debt financing, amounting to Rs 40.4 billion. Simultaneously, it tapped into financial assets to reduce the need for additional borrowing.
    
    Debt and Link with the Deficit
16. 16.  The general government debt stood at Rs 491.9 billion at the end of June 2024 compared to Rs 448.8 billion at the end of June 2023, representing a year-on-year increase of around 9.6%.
17. 17.  Debt increased (Rs 43.1 billion) by less than the recorded fiscal deficit (Rs 56.2 billion) during the year under review as the deficit was not fully financed by borrowing.
     

    ​​ ​  ​

    ​​​​​​

    ​ 22 September 2025    

​