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All eyes on NPP government’s maiden budget today
- Pay hike for public servants expected
- Sri Lanka has to trim its budget deficit to 5.2% in 2025, increase public revenue, and post a primary surplus of 2.3% of GDP to stay within IMF requirements
- Government might be compelled to impose fresh taxes and realign expenditures to increase its public revenue
Sri Lankans eagerly awaits the maiden budget of the NPP government which is expected to be presented by President Anura Kumara Dissanayake today.
President Dissanayake will be the fourth head of state to present a budget. Three heads of state namely Chandrika Kumaratunga, Mahinda Rajapaksa and Ranil Wickremesinghe have presented budgets in Parliament during the recent past.
All eyes will be on the budget 2025 in order to get a glimpse of what economic reforms the government would come out with in the backdrop of the massive mandate for social, economic and political reforms it received during the recent national elections.
Key figures of the government have promised a package of concessions which include a pay hike for the public servants. “Boil some chickpeas and corn and be prepared to listen to budget 2025 as it will comprises of what Sri Lankan people always wanted to hear,” Minister of Trade Wasantha Samarasinghe publicly stated over the weekend.
It is also envisaged that the IMF will have some influence on the budget as the current government like the previous one is working with the donor. Under its agreement with the IMF, Sri Lanka has to trim its budget deficit to 5.2% in 2025 from a target of 7.6% last year, increase public revenue, and post a primary surplus of 2.3% of GDP to stay within the global lender's requirements. Foreign news reports said government might be compelled to impose fresh taxes and realign expenditures to increase its public revenue from the 13.1% of GDP target for 2024 to 15.1% of GDP set by the IMF for 2025.
State expenditure for the year 2025 has been approximately increased to Rs 4.2 trillion compared to Rs 3.8 trillion allocated for 2024,
Many including the international community are awaiting to see how the government is planning to go ahead with the debt restructuring process.
The second reading and the committee stage debate on the budget is to go on till March 26, 2025.
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