2024 budget to see new welfare, revenue goals

COLOMBO: Sri Lanka’s 2024 budget, which will be presented to the parliament on Monday, is likely to focus on new welfare measures amid a steep fall in the government’s popularity among the public, while fresh revenue measures are expected in line with meeting IMF targets, government officials quoted by Economy Next say.

President Ranil Wickremesinghe will present a strict budget with the least room for maneuvering as his hands are tied with the commitments the government has made for the economic recovery program with the International Monetary Fund (IMF).

The 2024 budget presentation comes as the island nation waits for the second tranche of the IMF’s $3 billion loan.

Though the IMF officials and Sri Lankan authorities have concluded the staff-level agreement, the global lender’s executive board has yet to approve around $330 million disbursement in the second tranche.“The budget will be an acid test for this government. If it is completely going with the IMF targets, then people will have to pay more taxes on the one hand. On the other hand, it will have to reduce taxes to reduce the cost of living,” said a senior government official who knows the 2024 budget policies.

“President Wickremesinghe might lose his government if he leans too much to IMF policies and he might lose his fight against economic war if he is going to satisfy the public sentiment. It is tough.”