The government has exceeded the quarterly tax revenue targets set by the International Monetary Fund (IMF), according to observations made by the State Finance Committee.
Despite the strong revenue performance—boosted by income from vehicle imports and other tax sources—the committee noted that capital expenditure remains comparatively low.
These findings were included in the State Finance Committee’s report on the 2026 Appropriation Bill, tabled in Parliament this week. The report outlines key fiscal and economic assumptions used to assess projected government spending and revenue.
According to the report, the government is on track to maintain the tax-to-GDP ratio required throughout the year. As a result, the estimated tax revenue of Rs. 4,725 billion is expected to exceed the IMF target of Rs. 4,350 billion.
The committee also highlighted that last year’s tax revenue target of Rs. 3,700 billion was successfully met by the end of the year.
Citing the July 2025 IMF review, the Public Finance Committee noted that the Fund had set quarterly revenue targets of Rs. 850 billion for March 2026 and Rs. 1,850 billion for June 2026, which together would support achieving a tax revenue ratio of 14.2% of GDP for the year.
“Given the collections of Rs. 4,910 billion, Rs. 985 billion, and Rs. 2,152 billion recorded by March and June 2025, the 2026 targets appear well within reach,” the report stated.
The committee, chaired by Dr. Harsha de Silva, presented its report to Parliament on Friday (14), ahead of the second reading vote on the Appropriation Bill.
The second reading was approved with 169 votes in favour, 42 against, and eight abstentions.
