The government is considering salary increments for public sector employees and several welfare enhancements as it prepares to present its first budget next month.
Public Sector Salary Increment
Treasury officials revealed that a salary increase of up to Rs. 7,500 per month is under review. Any higher increase would require approval from President Anura Kumara Dissanayake, who also serves as the finance minister. Public servants’ salaries have not seen an increase in several years, making this a key focus.
No Pension Increase
However, pensioners will not see any increment in their benefits in the upcoming budget, set to be presented in Parliament on February 17.
Welfare and Development Proposals
The government aims to boost the production economy by engaging the rural sector and enhancing export growth. Key proposals include:
Fertiliser Subsidy: Increased subsidies to support agricultural production.
Aswesuma Program: Expansion in the number of beneficiaries and their allowances under this social welfare initiative.
Agriculture and Fisheries: Enhanced benefits to promote exports.
Concessionary Loans: Schemes to support economic activities.
Revenue and Budget Challenges
The government expects significant revenue from vehicle import taxes, targeting Rs. 450 billion. Expanding the tax base and introducing anti-tax evasion measures are also planned. Additionally, over $2 billion in foreign-funded projects will be announced.
The budget is being developed within the constraints of the Public Finance Act, which caps the budget deficit at 13% of GDP, and under the framework of the IMF, ensuring compliance with international financial standards.
This budget seeks to balance fiscal responsibility with measures to support growth and welfare.
Join our WhatsApp / Telegram groups below.
