The government is deliberating an increase in the basic salary or allowances of public sector employees as it prepares to present its maiden budget next month.
Treasury officials have indicated that salary increments of up to Rs. 7,500 per month are feasible within the current financial framework. However, any increase beyond this amount will depend on a decision by President Anura Kumara Dissanayake, who also serves as the Minister of Finance.
Officials noted that the proposed increment addresses the lack of basic salary increases for public servants in recent years. However, the upcoming budget, scheduled to be presented in Parliament on February 17, will not include provisions for pensioners.
The government is focusing on fostering a production-based economy, with an emphasis on engaging the rural sector to boost export contributions.
Key proposals under consideration include:
- An increase in the fertiliser subsidy to support agricultural productivity.
- Expanding the Aswesuma program by increasing the number of beneficiaries and their allowances.
- Enhanced social welfare benefits to provide broader support to vulnerable communities.
- Concessionary loan schemes to stimulate economic activities.
- Support for agriculture and fisheries sectors, aiming to enhance export capacity.
A significant portion of government revenue in the upcoming budget is expected to come from vehicle import taxes, with an estimated income of Rs. 450 billion. Additionally, the government plans to expand the tax base and implement measures to curb tax evasion.
The budget will also outline foreign-funded projects worth over USD 2 billion, which are expected to drive development initiatives.
The preparation of the budget has faced constraints due to the Public Finance Act, which mandates that the budget deficit must remain below 13% of GDP. Furthermore, the budget is being developed within the framework of the International Monetary Fund (IMF), with consultations anticipated in the near future.
