(FT) P’ment approves Budget 2018 with two third majority

Budget 2018 on Saturday received House approval  with 155 lawmakers voting in its favour while 56 voted against it.

The 72nd Budget of independent Sri Lanka was moved in Parliament on 9 November.

It was the maiden Budget Speech of Minister of Finance and Mass Media Mangala Samaraweera, who offered liberalisation to unlock barriers to attracting large investments, trade and start-up enterprises along with many tax reductions for the middle class while throwing in a series of plans to increase exports.

Budget 2018 was also the fourth Budget of the Unity Government which was elected on 8 January 2015 that got approved to drive the country towards establishing a strong economy capable of creating one million jobs.

In 2018 the Government aims to boost its tax revenue by 16.3% to Rs. 2.03 trillion YoY to meet a commitment given to the International Monetary Fund in return for a $ 1.5 billion three-year loan, while reducing the fiscal deficit to 4.8% of GDP from this year’s 5.2%

Minister Samaraweera, addressing Parliament before the final vote, said: “We envisage the day when the farmer’s daughter becomes an agri-biz entrepreneur, when the fisherman’s son becomes a seafood exporter. Sri Lanka needs to go back to its roots of being a nation of entrepreneurs, a nation of traders. To do this we must be open to global trade, embrace competition and take on the world and win.”

The Appropriation Bill to provide for the service of financial year 2018 was presented in Parliament on 9 October 2017 by State Minister of Finance Eran Wickramaratne seeking House approval to raise and spend Rs. 3.982 trillion in 2018 to meet the capital as well as recurrent expenses of the Government. However, according to Government estimates, state coffers will receive Rs. 2.175 trillion inclusive of donations and grants. The highest allocation of Rs. 290.7 billion is for the Ministry of Defence and the lowest of Rs. 105 million is to the Ministry of Special Assignments.

According to the Minister, Sri Lanka has broken all barriers and has become a vibrant democracy and the Government has shouldered the much-wanted transformation.

“Sri Lanka has been removed from the Global Impunity Index owing to the massive democratic changes made by the National Unity Government over the past three years,” he confirmed.

The Appropriation Bill 2018, gazetted on 18 September 2017 to provide for the service of the financial year 2018, was seeking passage to authorise the raising of loans within or outside Sri Lanka for the purpose of such service; to make financial provision in respect of certain activities of the Government during that financial year; to enable the payment by way of advances out of the Consolidated Fund or any other fund or moneys, of or at the disposal of the Government, of moneys required during that financial year for expenditure on such activities; to provide for the refund of such moneys to the Consolidated Fund and to make provision for matters connected therewith. (AH)

Source: Daily FT

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