How to read a budget

1. Start with the total

The 2027 Appropriation Bill provides for Rs 9.92 trillion of spending. Two lists add up to that number: the First Schedule (Rs 4.99 trillion) and the Second Schedule (Rs 4.93 trillion). The Bill also sets a borrowing limit of Rs 3.80 trillion. See the 2027 page, or the Budget in 60 seconds.

2. Know the three schedules

• First Schedule: money for general services, listed by ministry, then by Head, then by programme.
• Second Schedule: spending charged on the Consolidated Fund, such as debt servicing, pensions and independent commissions. These amounts are set by the Constitution or other laws.
• Third Schedule: limits for advance accounts, such as advances to public officers. Budgets LK does not count it in the spending total.

3. Follow the Head, not the ministry name

A Head is a numbered spending unit, usually a department. Ministries are renamed and merged often, but the Head number stays the same. That is why every Head has its own page showing its money across the years. Try Head 249, the Department of Treasury Operations.

4. Recurrent and capital

Recurrent spending is the running cost of services, such as salaries and supplies. Capital spending is for assets and development, such as roads and buildings. In the schedules, capital also includes repayment of public debt by the Department of Treasury Operations, so a large capital figure there is not all construction.

5. Compare fairly

• Prices change. A Rs 100 billion budget in 2012 bought more than Rs 100 billion buys now. Use the Amounts selector at the top of the page, or the inflation page, to compare in the same prices.
• Years are not all alike. The 2008 and 2009 Acts have no Second Schedule, so their totals cover voted spending only. For 2020, only the Budget Estimates book is available, so it is shown at ministry level.
• Plans are not outcomes. The Bill says what the government may spend. What it actually collected and spent is on the revenue page, from Central Bank figures.

6. A five-minute routine

1. Read the Budget in 60 seconds for the headline numbers.
2. Open the year page and look at the Where Rs 100 goes chart.
3. Check debt servicing on the debt page.
4. Pick one Head you care about, such as health or education, and read its page.
5. Use Compare to see what changed from last year.

Common questions

What is the difference between the Budget speech and the Appropriation Bill?

The Budget speech is the Minister of Finance's statement of plans. The Appropriation Bill is the legal document that sets how much each ministry and Head may spend. Budgets LK reads the Bill.

What do the First and Second Schedules mean?

The First Schedule lists money for general services by ministry and Head. The Second Schedule lists spending charged directly on the Consolidated Fund, such as debt servicing.

Why is debt servicing so large?

It combines interest with repayments of loans that have fallen due. Repayments often appear again as new borrowing when old loans are rolled over, which is why the total looks large.

More terms are explained in the glossary.