Government spending has increased by 5.4% to Rs. 3,476.9 billion in the first eight months of 2024 compared to Rs. 3,297.3 billion during the same period last year, according to a pre-election budget report. 

This amount represents nearly half of the projected annual expenditure of Rs. 6,977.8 billion.

Recurrent expenses, which include salaries, interest payments, goods, and subsidies, saw a 3.4% rise, reaching Rs. 3,041.6 billion. 

Salaries and wages climbed by 6.7%, while spending on goods and services grew by 8.2%. 

Capital expenditure and lending surged by 22.4% to Rs. 435.3 billion, with a significant boost in public investment driven by increased spending on fixed assets and loans to Government institutions.

On the revenue side, total Government income, including grants, jumped by 40.5% to Rs. 2,565.9 billion. This increase was fuelled primarily by a 41.4% rise in tax revenue, which reached Rs. 2,348.5 billion. 

Value-Added Tax (VAT) played a significant role in boosting revenue, with collections soaring by 87.2% to Rs. 842.5 billion in just eight months, surpassing the total VAT revenue for the entire previous year.