Fin Min finalises Budget 2024
The Ministry of Finance is finalising Budget 2024 aiming to create a conducive environment for the people facing cost of living hardships without imposing new taxes in formulating for the next fiscal year. The budget is to be presented on November 13.
However it will propose necessary measures to widen the tax base within the existing tax framework imposing heavy penalties on tax evaders, State Minister of Finance Ranjith Siyambalapitiya said.
The budget will propose the enactment of a new Tax Administration Act that applies to all taxes and that contains provisions that effectively prevent corruption by imposing stricter penalties.
These penalties will include criminal charges on taxpayers as well as on tax officials for taking bribes or aiding tax avoidance.
The ministry will be directed to amend tax legislation to eliminate or restrict ministerial authority to introduce tax changes without prior parliamentary approval and ensure that such changes do not generate revenue losses.
This will be in accordance with the new fiscal policy to meet the International Monetary Fund (IMF) targets, the minister said.
The 2024 budget will contain unexpected elements, including a proposal to tax primary bond dealers, he added.
According to the programme targets, the government needs to raise revenue equivalent to 12 per cent of GDP by 2024.
Meanwhile, the minister said there is no need to make forecasts about the upcoming budget as the government has made increased allocations for health and welfare of people.
As per the Appropriation Bill for 2024 recently presented to Parliament, defence, health, transport, and public administration ministries have received the largest allocations.
The defence ministry gets the largest year on year increase of Rs. 240 billion (excluding interest payments), followed by the Health Ministry's Rs. 88 billion.
Equally, the Ministry of Women, Child Affairs and Social Empowerment will get the largest year on year reduction in its allocated expenditure of Rs. 78 billion.
The defence ministry gets the largest year on year increase of Rs. 240 billion (excluding interest payments), followed by the Health Ministry's Rs. 88 billion.