Food ration scheme likely in interim budget 2022
President Ranil Wickremesinghe’s interim budget 2022 to be presented on Tuesday is likely to contain a food ration scheme covering essentials like rice, wheat flour and dhal for the poor and to strengthen nutritional assistance.
The interim budget is considered crucial to sustaining Sri Lanka’s recovery from the current economic crisis and social instability triggered by food, fuel and energy scarcity, Presidential Secretariat sources said.
Agricultural loans to farmers who have land below two hectares will be written off, they said, adding that the ownership of state urban housing units will be given to occupants who are now residing in these housing units on a monthly rent.
The interim budget a revision of the budget 2022 which was not implemented due to economic crisis will mainly focus on revenue and expenditure for the next four months commencing September 2022 while reallocating finances from areas that don’t deserve it, into places that need them, a senior Finance Ministry official said.
Government expenditure for 2022 has been revised to Rs. 3275 billion and it included the new financial allocations to the President, Prime Minister and various ministries. In budget 2022 presented in November 2021, the state expenditure estimate was Rs.2796 billion.
Total revenue including tax revenue, non-tax revenue, Provincial Councils’ revenue and grants is estimated at Rs.2.06 trillion for 2022.
The interim budget proposals include a major income support scheme and social security net for the poorest sector, farmers, fishermen and lower income earners and some relief for the middle class.
Allocation for pension payment of retirees will be increased to Rs. 270 billion from Rs.210 billion while increasing Samurdhi relief to around Rs. 350 billion from Rs.100 billion, the ministry official said
It has also proposed to allocate Rs. 200 billion as incentives to low- income families as well as the Small and Medium sector.
It has been proposed to reintroduce the tax system that prevailed in 2019 in the interim budget, while proposing an increase of taxes for tobacco and liquor targeting revenue of Rs.8 -10 billion.
Meanwhile Sri Lanka’s 2023 budget due in November would aim to reduce the fiscal deficit to 6.8 per cent in 2023 from the projected 9.9 per cent in 2022.
Sri Lanka is planning to reduce the budget deficit to 6.8 per cent of gross domestic product in 2023 from an expected 9.9 per cent in 2022 he said adding that a fiscal framework for 2023-2025.will also be introduced.
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