Interim budget to parliament before August-end

The government is preparing to present a revised budget to parliament in August in order to amend the original budget estimates for the year due to the ongoing economic crisis.

“The revised data relating to ministries have been completed. A revised budget for the remainder of the year will be presented to parliament within next month,” Cabinet Spokesperson of the interim government and Minister of Transport, Highways and Mass Media Bandula Gunawardane said.

The Cabinet of Ministers in early June approved a proposal to present a bill to parliament to amend the Appropriation Act No. 30 of 2021 for the year 2022, in order to revise the original budget estimates for the year.
According to the original budget estimates, the revenue was expected at Rs.2.3 trillion and the expenditure 
Rs.3.3 trillion. 

However, the Finance Ministry expects the actual revenue to fall to Rs.1.6 trillion and expenditure to increase to Rs.4 trillion, causing an additional budget deficit of Rs.0.8 trillion.  
The fiscal deficit increased to Rs. 524.1 billion in the first four months of 2022 compared to Rs.520.5 billion in the same period of 2021.

The government has already increased several taxes amid the economic crisis and fiscal instability. Further, tax increases are expected to come into effect once the country enters into an IMF programme. However, it was not clear whether the interim budget would be presented by the current interim government or the anticipated multi-party government, which is yet to be finalised.