Finance Minister presents 2022 budget in parliament

Finance Minister presents 2022 budget in parliament

Fri, Nov 12, 2021, 09:20 pm SL Time, ColomboPage News Desk, Sri Lanka.

Nov 12, Colombo: Finance Minister Basil Rajapaksa presented the Second Reading of the Appropriation Bill (Budget Speech) for the Fiscal Year 2022 in parliament today.

This is the second budget of the government of President Gotabaya Rajapaksa and Basil Rajapaksa’s maiden budget speech as the Minister of Finance.

The budget has set a total revenue target including grants of Rs. 2,284 billion while total expenditure is estimated at Rs. 3,912 billion and Recurrent expenditure at Rs. 2,996 billion.

The Finance Minister said his vision is to manage the overall budget to reduce the budget deficit from the 10 percent of national income level at present to 1.5 percent by 2027.

Accordingly, the budget proposes to reduce the budget deficit which has grown to 11.1 percent in 2020 to deficit to 8.8 percent in 2022, 6.1 percent in 2024, and 4.8 percent in 2025. A balanced budget is expected in 2028.

Aiming to rebuild Sri Lanka economy affected by the Covid pandemic, a “Social Security Contribution” is proposed. This contribution will be charged at 2.5 percent on the annual threshold turnover exceeding Rs. 120 million. Rupees 140 billion is expected as revenue through this contribution. This will be effective from 01 April 2022.

It is proposed to increase Excise tax with immediate effect. An additional revenue of Rs. 25 billion is expected through this tax increase.

The Finance Minister has proposed several measures to cut the costs of the loss making state run institutions and plans have been made to increase the income.

The budget proposes to reduce the fuel allowance of the government servants and ministers by 5 liters per month. Telephone charges will be reduced by 20 percent. The eligibility period for entertain a pension for a parliamentarian including the President has been increased from 5 years to 10 years.

Minister Basil Rajapaksa has proposed in the budged that the retirement age of the government servants to be increased up to 65 years. He also proposed to introduce a pension scheme for the senior citizens who are not entitled for a pension at present.
The Finance Minister proposed one billion rupees to provide facilities for senior citizens and people with special needs.

The Finance Minister has also proposed to allocate 35 billion rupees for the development and organic fertilizer related activities. A regulatory authority will be setup to control and handle the grievances of the three-wheeler related services. The government has also proposed to provide one billion rupees for the development of liquid milk production.

The Government has allocated additional funds in the 2022 budget for families of the missing. Finance Minister Basil Rajapaksa said that over the years funds had been allocated in the budget to assist the families of the missing. He said that an additional Rs. 300 million has been allocated in the 2022 budget to assist the families of the missing.

The government has proposed to allocate 30 billion rupees to address the salary anomalies issues faced by teachers and principals. Meanwhile, a new salary scheme will be introduced from 2022 for the state sector. The Minister said due increments will accordingly be ensured through this scheme.

Full Budget Speech and the relevant annexures can be downloaded from the following links

Budget Speech – 2022
Summary of the Budget (2021-2022)

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