Despite improved revenue collection, the pace of public spending remained exceptionally sluggish over the same period.
The total receipts rose by 9.67 percent compared to the Rs 85.19 billion recorded in the corresponding period of the previous fiscal year, marking an increase of Rs 8.23 billion. Tax revenue served as the main driver, contributing Rs 85.19 billion, while non-tax revenue added Rs 7.03 billion, bringing total revenue to Rs 92.22 billion. The overall receipts were further supported by Rs 240.3 million in foreign grants and Rs 970.7 million from other receivables. Despite the initial uptake, current receipts still lag far behind the annual collection target of Rs 1,642.06 billion.
On the expenditure front, total spending reached just Rs 41.88 billion by mid-August, representing a meager 1.97 percent of the total Rs 2,124.34 billion annual budget allocation. Current expenditure accounted for the bulk of early disbursements at Rs 21.40 billion out of an allocated Rs 1,270.58 billion, or roughly 1.68 percent of its yearly budget. Meanwhile, financial management spending totaled Rs 19.15 billion, or 4.53 percent of its annual target.
Capital expenditure, critical for infrastructure construction and job creation, showed the weakest performance. Only Rs 1.32 billion was spent out of the Rs 431.10 billion earmarked for development projects, amounting to just 0.31 percent of the total capital budget.
The vast gap between revenue collection and capital spending raises concerns over a potential recurrence of delayed budget execution, where the bulk of development spending shifts to the end of the fiscal year. Financial authorities emphasize that accelerating development expenditure will be vital to sustaining economic momentum and achieving broader development goals.
Note: The figures remain preliminary and are subject to adjustment following final account reconciliations.
