Revenue surplus aimed at for first time in over 25 years
Friday, 29 November 2013 00:40
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The 2014 Budget presented last week aims at securing a modest but first-ever revenue surplus in over 25 years.
According to the 2014 Budget tabled in Parliament last week, a revenue surplus of 1% of GDP (recurrent expenditure versus revenue) is planned.
Deputy Secretary to the Treasury Dr. B.M.S. Batagoda said the surplus, if achieved, will be the first time since 1987. In 2013, projected revenue deficit is 0.5% of GDP whilst last year it was 1% of GDP. The Government hopes to improve the surplus to 1.6% of GDP in 2015 and to 2.3% by 2016.
The overall budget deficit will be around 5.2% in 2014 from 5.8% in 2013. The medium term target is to reduce the deficit to 3.8% by 2016.
Continuity in fiscal consolidation in recent years has been welcomed even by the IMF, though it was of the view that the pace is relatively slow and could be faster.
