Govt. to run at Rs.531 bn deficit in March

The government is projected to run at Rs.531 billion deficit in March, including a Rs.23 billion shortfall in financing recurrent expenditure in the month.  
Although the country is in the final steps of securing the US$ 2.9 billion International Monetary Fund (IMF) rescue package, Treasury Secretary Mahinda Siriwardene on Monday warned the Cabinet of Ministers to be extra vigilant on managing public finances effectively while presenting revenue and expenditure estimates for March.

Accordingly, the state revenue is estimated at Rs.173 billion while recurrent expenditure is estimated at Rs. 196 billion for the month, resulting in a shortfall of around Rs.23 billion.
  “We have to somehow find this Rs.23 billion shortfall through taxes and other non-tax revenue sources, as we cannot print money to fund deficits except for debt servicing,” said Cabinet Spokesperson, Minister of Transport and Highways, and the Minister of Mass Media, Bandula Gunawardana.

  The debt servicing obligations for March are estimated at Rs.508 billion which is to be financed by issuing government securities and monetary financing (money printing).
  Altogether, the government is expected to run at Rs.533 billion deficit in March, up from over Rs.380 billion deficit recorded in January.(NF)