Finance Minister Mangala Samaraweera will deliver his maiden Budget speech in Parliament (Second Reading of the Appropriation Bill) today. It would be a development-oriented Budget, giving sweeping benefits for entrepreneurs to kickstart businesses.
In a brief media event at the Finance Ministry, Minister Samaraweera said that benefits would also be offered to the agri sector, education, exports and imports; the Budget would also encourage a green economy. “This budget would one aimed at strengthening families.”
The Minister recalled a Chinese proverb which said that it’s better to teach a man to fish rather than giving him fish to eat and said that this theory too would be a cornerstone of the Budget. “We don’t want to offer short-term benefits, but give long-term sustainable benefits in the Budget.”
Asked to comment on the rising prices and price control of some essential goods, the Minister said that he was against price controls. “It’s an open economy and market forces should decide prices.”
“The government also reduced prices of essential items by reducing the special commodity tax. To absorb this, government would allocate Rs. 1.5 billion each month.”
Deputy Minister Eran Wickramaratne said that Minister Samaraweera was the Minister of Finance for just six months and during that time too several concessions were offered to the public. “These included the reducing of tax on single cabs, Batta lorries, lowering of telecom and other income taxes.”
Government expenditure for next year is estimated to be Rs 3,982,367 million with Rs 1,308,939 million spent on recurrent expenditure, while Rs 668,324 million has been allocated for capital expenditure. Revenue including foreign grants is estimated at Rs 2,175,000 million.
Sri Lanka’s total borrowing requirement from both foreign and local sources for next year will be Rs 1,813 billion. The debate on the second reading will start on November 10 and the third reading and vote will be on December 9.
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