Home / Front Page/ Govt. to cut 2017 spending to meet deficit goal

Govt. to cut 2017 spending to meet deficit goal


Comments / {{hitsCtrl.values.hits}} Views / Friday, 1 September 2017 00:05

Facebook

Reuters: The Government will cut down on expenditure to stick to its 2017 budget deficit target of 4.6% of Gross Domestic Product (GDP) and compensate for a fall in revenue, the top bureaucrat in the Finance Ministry said on Thursday.

Sri Lanka will fall short of its 2017 revenue target because of delays in adopting budget proposals, while flood relief after the worst torrential rains in 14 years pushed up Government spending.

“We will rearrange and cut some expenditure to meet the deficit target,” Finance Secretary R.H.S. Samaratunga told Reuters on the sidelines of a meeting in Colombo.

“Unless there is approval for more borrowing, we can’t go with the same expenditure we had targeted.”

Sri Lanka has committed to cut the budget deficit to 4.6% of the GDP this year from the last year’s 5.4% to satisfy conditions set by the International Monetary Fund for a $1.5 billion loan it approved mid last year.

Sri Lanka has targeted revenue of Rs. 2,088 billion ($13.68 billion) this year, a 27% rise from last year’s total.

However, the Finance Ministry now expects full-year revenue to lag its target and settle around Rs. 1,900 billion, according to the assessment based on 31 July revenue figures.

The Government will present a new tax bill demanded by the IMF as a condition next week and Samaratunga said some of the new proposals will be implemented from 1 October to raise the revenue for this year.


Share This Article

Facebook Twitter


DISCLAIMER:

1. All comments will be moderated by the Daily FT Web Editor.

2. Comments that are abusive, obscene, incendiary, defamatory or irrelevant will not be published.

3. We may remove hyperlinks within comments.

4. Kindly use a genuine email ID and provide your name.

5. Spamming the comments section under different user names may result in being blacklisted.

COMMENTS

Today's Columnists

“Sri Lanka’s future lies in producing exportable manufactured goods”: Dr. Howard Nicholas

Monday, 22 July 2019

Drawing lessons from Vietnam’s experiences The Sri Lanka-born economist attached to The Hague based Institute of Social Studies – Dr. Howard Nicholas – addressing a packed audience consisting of the alumni of the Postgraduate Institute of Manag


We should sell our water

Monday, 22 July 2019

When you read the title of this article, you will probably feel disgusted with me as selling our water has been a controversial topic since a long time ago. By the way, I am talking about virtual water trade and you would be surprised to know that we


A voice of compassion amid howls of zealotry

Monday, 22 July 2019

The unrestrained freedom extended by the current regime to a bunch of saffron-clad street vendors of Sinhala Buddhist zealotry is pushing Sri Lanka once again into a cauldron of ethnic and religious convulsion. The nationwide spread and virulence of


Roger Beteille: The man who reinvented the commercial airliner

Monday, 22 July 2019

The visionary engineer, pilot and manager who led Airbus to some its most significant decisions, passed away last month. Beteille, who was the head of French aircraft manufacturer Sud Aviation’s flight testing section, was made technical director


Columnists More