Government expenditure has increased by 5.4 percent to Rs. 3,476.9 billion in the first eight months of 2024, up from Rs. 3,297.3 billion during the same period in 2023, according to a new Finance Ministry report.
The report stated that spending had reached 49.8 percent of the annual budget estimate of Rs. 6,978 billion, which includes Rs. 450 billion allocated for bank recapitalization.
Recurrent expenditure, which accounted for around 87.5 percent of total expenditure in the first eight months of 2024, slightly increased by 3.4 percent in the same period, the report revealed.
The increase in expenditure was primarily due to a 6.7 percent rise in salaries and wages, reaching Rs. 659.5 billion, driven by higher cost-of-living allowances, and a 2.2 percent increase in interest payments to Rs. 1,559.7 billion due to higher payments on domestic and foreign debt.
Additionally, spending on subsidies and transfers grew by 1.5 percent to Rs. 623.8 billion, while capital and net lending saw a significant 22.4 percent rise to Rs. 435.3 billion. (Newswire)