Sunday Nov 24, 2024
Sunday Nov 24, 2024
Tuesday, 5 December 2023 00:02 - - {{hitsCtrl.values.hits}}
From its outward appearance, it seems that the Budget 2024 has no benefit for the construction industry. This is because over 500 billion Government contracts have been halted, out of which only 55 billion have been allowed to recommence. This is 10-15% which makes it nearly impossible for the industry to survive.
However, if you look closely at the other sections of the Budget, a large portion is attributed to the construction industry under these sections. Most importantly, there is 1.26 trillion allocated for development. As a country’s construction industry is the main driver of development, we expect that a larger portion of this will be given to construction.
For example, construction and expansions of universities and conversion of private higher education institutes, the commencement of a National Education University along with, New Technology and State Universities in 2024, are given some billions. The same shall apply for SME sector development.
Drinking water projects, estate housing, the Bimsaviya program, rehabilitation of structures affected by natural disasters, will be given prominence in the Budget and when acquiring foreign support.
Under the 10-year multipurpose rural and community development program commencing from 2024, public infrastructure and services in the hill country are to be developed, for which 10 billion has been allocated with an additional 10 billion for the maintenance of rural roads. The decentralised Budget shall restart with Rs. 11,250 million for regional development.Projects of $ 3 billion have been halted by funding agencies such as ADB, JAICA, World Bank, etc. which may restart next year after IMF has been streamlined. Along these lines, FDIs are also expected to come in especially the Port City development.
Therefore if we, the construction industry stays alert and finds a way to draw out these Budget allocations from the Government, we may survive the coming years.
(The writer is the President of the Ceylon Institute of Builders.)
