Sri Lanka’s 2024 Budget Unveiled; President Ranil Wickremesinghe Aims for Economic Revival with 47.1% Tax Revenue Increase

With one eye on next year’s elections and the other on IMF’s financial package, Sri Lanka President Ranil Wickremesinghe is presenting the budget for 2024 for the island nation. The crisis hit nation had hoped for some popular changes in this year’s budget to improve the living conditions. The President in his capacity as the finance minister took a dig at a section of the political class and asked them to stop hindering the nation’s progress as it strives to improve its economy. The 2024 budget aims for a 47.1% tax revenue increase to 3.82 trillion Lankan rupees, giving some hope towards meeting the IMF program standards by boosting state revenue.

Mr. Wickremesinghe also hinted that revenue from Income tax would see a 25% boost to 1.08 trillion Lankan rupees, while taxes on goods and services rise by 62.4% to 2.235 trillion Lankan rupees. In addition, the public sector employees who number 1.5 Million would get increased Cost of Living Allowance which was increased by 10,000 Lankan rupees, apart from other popular benefits given as Pension, and Senior Citizen’s Allowance. On fiscal challenge of the revenue this year, the President said that tax revenue in 2023’s first nine months stood at Rs. 2.015 trillion, emphasizing the need to bridge a Rs. 3.415 trillion revenue-expenditure gap.

Akaswani correspondent reports While the President spelt out the plan for increasing state revenues by various measures, he did not mince words when he cautioned against policies of his predecessors which could destroy the economy. He cautioned against ambitious projects solely carried out for political gain. He added that in order not to fall back into a crisis, the economic and political system of Sri Lanka must be created anew.

He further said that a new social consensus should be established and that this budget document has been presented to lay the foundation for it. Giving out salary hikes and other allowances aside, he made it clear that boosting revenues was high up on the agenda. With 2nd tranche of IMF package yet to be disbursed, budget expected to bring some home into the Sri Lankan economy.