Numbers.lk
1. Spending Priorities Hit the Mark
⭕️ The government has allocated funds strategically, focusing on trade, modernization, digitalization, and research – critical drivers for a post-crisis economy.
⭕️ Social sectors like child welfare, autism support, and prison reforms also received attention, addressing often-overlooked gaps. No glaring missteps; the budget ticks almost all policy boxes. ✅
2. Salary Hikes: A Slow Burn to Boost Confidence
⭕️ Public sector salary increases are phased over multiple years, a smart move to manage fiscal pressure. This creates optimism about future earnings without straining the Treasury’s immediate cash flow.
Note: At first glance, state sector salaries appear to have had the greatest increase ever, but the devil is in the details. For some professionals, the reduction in OT & ED rates could mean their take-home pay next April might actually be less than what they earn in March. (Just for optics—this cannot be intentional, but somebody at the treasury screwed up pretty badly.)
3. No Populist Pitfalls
⭕️ The budget steers clear of the JVP-style rhetoric (think unsustainable subsidies or aggressive nationalization). Instead, it leans into pragmatic reforms, signaling a shift toward fiscal discipline and pro-growth policies.
4. Revenue Side: High Hopes, Big Hurdles
⭕️ While spending is well-calibrated, revenue targets look ambitious. The push for digitalization and cashless transactions could improve tax compliance over time, but tangible gains may lag.
⭕️ The revenue plan leans on inefficient refunds (10% WHT, SVAT cancellation) to retain state liquidity. This exploits systemic inefficiencies in refund processes – a quick cash fix but not stimulative for businesses or the economy.
5. Key Agencies Under the Microscope
Key revenue generating agencies (IRD, Customs) face stretch targets meeting these goals will demand exceptional performance – think faster digitization, reduced leakage, and stricter enforcement. A tough ask without systemic reforms.
6. The Bottom Line
⭕️ For a country rebuilding from crisis, this budget is as good as it gets. It checks all the boxes: growth sectors funded, social gaps addressed, and fiscal discipline mostly intact. If the government walks the talk, Sri Lanka 🇱🇰 could be on the cusp of a new chapter.