Annual Report 2010 - Ministry of Finance and Planning

Ministry of Finance and Planning Sri Lanka > Annual Report 2010Performance of Provincial Councils (PCs)Total revenue collected by PCsincreased by 25 percent to Rs. 37billion in 2010 reflecting particularlythe recovery of trade related activitiesin line with the gradual retrieval ofdomestic economic activity. Taxrevenue, which mainly consists ofturnover tax, license fees and tax onproperty, accounted for 73 percent ofthe total revenue while the balance27 percent was from non-tax revenue,which mainly includes the revenue fromsales and charges, interest as well asprofits and dividends. The revenue ofPCs as a percentage of GDP amountedto 0.7 percent in 2010, a marginalincrease over that of the previous year.Recurrent expenditure of PCs indicateda 7 percent increase to Rs. 119 billionin 2010 of which about 78 percentof it was on personal emoluments,mainly on the salaries and wages ofthe education and health sectors.Total investments of PCs amounted toRs.37.3 billion in 2010. Investments oneconomic infrastructure developmentwere mainly on roads, transport, landdevelopment and rural electrificationprojects. In the context of developingsocial infrastructure, PCs investedparticularly in improving education,health facilities, indigenous medicine,housing facilities and library resources.PCs also invested on industriesand agriculture while giving moreconsideration to activities relatedto tourism, fisheries, livestock andvocational training. About 47 percentof the investment expenditure of PCswas financed through Province SpecificDevelopment Grants and foreignsources. During the year, Rs. 85.3 billionwas transferred as block grants to PCsfrom the national budget.Table 2.12 > Consolidated BudgetCategory Amount (Rs.Bn) As a % of GDP2008 2009 2010 2008 2009 2010Total Revenue 686.6 729.0 858.4 15.6 15.1 15.3Central Government 655.3 699.6 817.2 14.9 14.5 14.6Tax 585.6 618.9 724.7 13.3 12.8 12.9Non Tax 69.6 80.7 92.5 1.6 1.7 1.7Provincial Councils 31.4 29.4 36.8 0.7 0.6 0.7Tax 26 24.9 26.7 0.6 0.5 0.5Non Tax 5.4 4.5 10.1 0.1 0.1 0.2Total Expenditure 1,027.5 1,238.1 1,317.5 23.3 25.7 23.5Central Government (a) 996.1 1,201.9 1,280.2 22.6 24.9 22.9Current 743.7 879.6 937.1 16.9 18.2 16.7Capital and net Lending 252.4 322.3 343.1 5.7 6.7 6.1Provincial Councils (b) 31.4 36.2 37.3 0.7 0.7 0.7Current 26.4 33.9 33.8 0.6 0.6 0.6Capital 4.9 2.3 3.5 0.1 0.1 0.1Budget Deficit -340.9 -509.1 -459.1 -7.7 -10.5 -8.2Source: Department of National Budget(a) Includes transfers to PCs(b) Includes expenditure incurred by PCs using their own funds169