manusath-derana

How does government face decrease in revenue?

April, 17, 2014

When taken as a percentage of the Gross Domestic Product (GDP) the government’s revenue last year has shown a decrease compared to 2012.

While the government revenue has been 13.9 percent of the GDP in 2012, it has decreased to 13.1 percent last year. This has been due to the decrease in revenue of government institutions caused by the lowering of import taxes including on motor vehicles.

Furthermore, several government institutions had incurred heavy losses. Te government has faced this challenge by reducing its expenditure.