Performance-based budgeting for 2018

Thursday, 6 July 2017 00:00 - - {{hitsCtrl.values.hits}}

The Cabinet this week decided to prepare the next Budget under a Performance-based Budgeting method as part of a midterm Budget framework 2018-2020, abandoning the zero budgeting method used in 2016 and 2017. The Budget limits for line ministries will be determined taking into consideration the priority programs of the Government.

The move aims at increasing public income to16.5% of GDP by 2020 while limiting Government recurrent expenditure to 14.8% of GDP, the Cabinet proposal made by Finance and Mass Media Mangala Samaraweera highlighted.

Further, the proposal also aims at increasing public investment to 5.3% of GDP, while reducing the budget deficit to 3.5% of GDP and public debt to 70% of GDP. According to Cabinet Co-spokesperson Minister Gayantha Karunathilaka, Minister Samaraweera aims to maintain a single-digit inflation rate while continuing the mid-term economic growth rate at 6%-7%.