End July Budget deficit down 36% YoY

GIVING investors a strong signal on the economic recovery and future stability, the Government continues to report impressive gains in fiscal performance, with the Budget deficit in nominal terms falling by 36.3% to Rs. 556.1 billion in the first seven months of 2025, down from Rs. 872.6 billion in the same period of 2024.

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According to the latest Fiscal Review Report January-July 2025, released by the Finance Ministry Fiscal Policy Department, the declining Budget deficit is mainly due to revenue growth outpacing expenditure.

The Budget deficit target for the full year 2025 is Rs. 2.2 trillion.

Government expenditure in the seven-month period increased to Rs. 3.29 trillion, up 8.5% from Rs. 3 trillion a year ago, with the full-year estimate for 2025 at Rs. 7.2 trillion.

The primary deficit had increased to Rs. 973.6 billion in the first seven months of 2025, up from Rs. 519.4 billion a year ago.