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Sunday Dec 22, 2024
Thursday, 1 October 2020 00:32 - - {{hitsCtrl.values.hits}}
Treasury Secretary S.R. Attygalle yesterday said the Budget for 2021 will be presented to parliament on 17 November and will contain fiscal consolidation measures aimed at reducing the deficit.
Responding to questions, Attygalle acknowledged that the Budget deficit for 2020 would be 9% but insisted that this was largely due to expenses that were carried over from the previous year and COVID-19 related expenses. However, he assured that the Government was working to reduce the deficit to about 4% over the next few years.
“Obviously we cannot reduce the deficit at once. But we hope to gradually reduce it from next year. One of the main reasons for the Budget deficit to increase to 9% this year was unpaid bills by the State. Of the Rs. 242 billion that was owed Rs. 226 billion has already been disbursed. Once these payments reach the rest of the economy, including banks, we are anticipating a resurgence of growth in the third and fourth quarters,” he said.
