MP Withanage’s boast: right on reduced revenue targets

Fact Check

MP Madhura Withanage claimed that in the first six months of 2024, (i) tax revenue had increased by LKR 1,700 billion, growing by 42.6%, and achieving 44.7% of the annual estimate, and (ii) non-tax revenue had increased by 30.4%, reaching 52.7% of the annual target.

To verify these claims, FactCheck.lk consulted the Central Bank of Sri Lanka’s Weekly Economic Indicators and the Ministry of Finance’s (MoF) Approved Detailed Budget Estimates 2024 and the Mid-year Fiscal Position Report (FPR) 2024.

Tax revenue (TR): Exhibit 1 shows that tax revenue collected in the first half of 2024 was LKR 1,709 billion, a 42.6% increase over the same period in 2023. This figure represents 44.7% of the annual estimated tax revenue of LKR 3,820 billion for 2024, aligning with the MP’s claim.

Non-tax revenue (NTR): NTR comprises of government income from sources, including interest income, rent, fines, fees, charges, and profits and dividends from SOEs. It grew by 30.4% from LKR 116 billion in the first half of 2023 to LKR 151 billion in the first half of 2024. This was 46.7% of the LKR 324 billion in the approved budget estimate for 2024. This figure is less than the MP’s claim on reaching the NTR target. The higher 52.7% claimed by the MP is due to the MoF revising the reported target down to LKR 287 billion, and the MP reporting the percentage based on that reduced target.

Therefore, while the MP’s claim does not align with the NTR collected as a percentage of the approved budget, it is consistent with the downward revised figures reported in the FPR, which he is citing.

Therefore, we classify the MP’s claim as TRUE.

Exhibit 1: Government tax and non-tax revenue (in LKR billions)