AMN
Sri Lanka’s President Ranil Wickremesinghe, as Finance Minister, will present the budget for 2024 on Monday. The budget will be crucial for the island nation as the public expectations revolve around reduced taxes, increases in wages, and lower prices, while keeping the budget deficit under check.
The President has said the budget will be full of surprises and a section of the island hope for populist reforms considering that this is a pre-election budget. At the same time, the State Minister of Finance, Ranjith Siyambalapitiya, has promised higher wages to public servants and relief measures for the poor. While the measures under taxes are being expected to ease, it will be critical to the health of the economy that the budget deficit is brought down from 15 percent of GDP reported this year.
Experts have speculated on an inflow of revenue by the sale proceeds of state-owned enterprises. The island has initiated the process for divestment in several of its state-owned enterprises.
There is also a view that foreign assistance as budgetary support may also help boost government receipts. The budget of 2023 was presented as Sri Lanka went through its worst ever economic crisis since its independence. Despite several measures having been proposed last year to boost government revenues, earnings had not made a significant jump. Less than expected revenue had been cited by IMF during their first review that was conducted in September this year.