Thursday, 29 January 2015 01:21
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Finance Minister Ravi Karunanayake will present a mini-Budget today, unveiling some immediate key measures of the new Government of President Maithripala Sirisena and Premier Ranil Wickremesinghe.
The mini-Budget will cover four months of spending up to April.
Karunanayake said the Government aims to fulfil its election pledges, including tax cuts and salary hikes.
The mini-Budget will include fiscal measures promised in the 100-day program of the Sirisena-Wickremesinghe Government.
Last week he said the new Government would stick to the original 2015 budget deficit of 5% and loss of revenue due to populist measures will be met by reduction in waste and corruption. For example, the recent cuts in fuel prices will cost Rs. 65 billion to Government revenue.
Analysts expect Karunanayake to also shed insights into the actual status of the economy as well as the exact nature of the debt trap, about which the then Opposition repeatedly warned the public. Some speculated new revenue generating measures including tax income will be announced but this couldn’t be confirmed.
However, some degree of policy direction of the new Government is expected today on the back of the first Monetary Policy Review statement issued on Tuesday.
Some ruled it out as a mini-Budget, stating it was an amendment to the 2015 Budget presented in October last year by then President and Finance Minister Mahinda Rajapaksa. In that context, the proper medium term budget and economic framework of the new Government will be known only post-general election.
