Budget 2024 paves way for suffering masses to take a step forward

Sri Lanka’s revenue and welfare-oriented budget 2024 aims at reallocating the resources of the country in a more economically and socially beneficial manner providing benefits for poor and the middle class to take a step forward from the present economic hard ships, State Finance Minister Shehan Semasinghe said.

Priority will be given to uplifting the living standards of the poor and vulnerable communities by providing social security benefits while extending the existing Samurdhi welfare scheme.

The economic crisis-hit small and medium scale enterprises (SMES) will be provided with concessions in the budget 2024.

In a bid to support the country’s SMEs access to commercial loans a budget proposal will be made towards operationalising the Asian Development Bank (ADB)-backed National Credit Guarantee Institution (NCGI) initiative as a public-private partnership (PPP), with an initial capital infusion of around US$110 million.

It has also been proposed to bring in both the EPF and ETF under an independent board for the future actions to safeguard the retirement benefits of private sector employees taking the EPF out from the Central Bank.

The cabinet approved appropriation bill projects the government’s total expenditure for the year 2024 to exceed Rs.3.86 trillion. The revenue is estimated at around Rs.1.65 trillion, provisional data shows.

Tax administration will be strengthened while widening the tax base and increase direct taxes at least to 30-40 per cent from 20 per cent of tax revenue at present by introducing several new taxes while revising existing indirect taxes via new budget proposals, he disclosed,

Treasury Secretary Mahinda Siriwardena has given instructions to relevant officials to follow strict cost control measures when preparing budget proposals.

The Treasury Secretary has issued instructions to relevant officials through the National Budget Circular No. 04/2023, urging them to come up with proposals to make transformative changes through minimal input so that the country and the public can get the maximum results from the money spent.

The government intends to impose taxes on primary bond dealers and propose special tax breaks and concessions in the 2024 budget to attract large-scale foreign direct investors in information technology and vehicle assembly, official sources divulged.