The Central Bank has cited the July-August work disruption in financial institutions as reason for low revenue collection and decline in government spending. Revenue collection declined by 24.1 percent to Rs1845.1(??), compared to the 8.3 percent increase recorded in the first month of the last fiscal year. Likewise, government spending, which should have increased significantly because of the early approval of the budget, went down by 7.5 percent to Rs1.64 billion. Last year, the disbursements had increased by about 30 percent. Both regular and development spending have recorded a decline of 38 and 66 percent respectively. The bank also reported a robust foreign exchange reserve, which increased by 23 percent to Rs95 billion, 86 percent of it in convertible currency.
The monthly reports of the central bank serve as a barometer of the economic health of the country. Of late, however, the reports have been appearing after considerable delay?the one issued on 3 October was two months late.