Budget : Govt hard pressed between IMF and demand for public relief

• The Cabinet earlier announced that it would ensure a pay hike for public  servants
• Currently , a bulk of state revenue collected in terms of  taxes is spent for the payment of salaries and pensions 

By Kelum Bandara   
The government is expected to present the annual budget for 2024 today in Parliament, prepared amidst much struggling to strike a balance between the conditions stipulated by the International Monetary Fund ( IMF) and the need to give concessions to people ahead of the national elections expected later next year .   
In accordance with the IMF programme, the government is mainly required to meet its revenue targets at the end of the year while cutting state expenditure. 

 The adherence to IMF measures is not populist though it is important to ensure long term stability of the economy regaining the growth momentum once again .   
However , the government leaders including President Ranil Wickremesinghe had a hard time in the preparation of the budget while bargaining with the IMF to secure space for some relief measures for people including public servants . It needs to proceed with austerity measures , though .  
The Cabinet earlier announced that it would ensure a pay hike for public servants . Currently , a bulk of state revenue collected in terms of taxes is spent for the payment of salaries and pensions . Further a pay hike will exacerbate the revenue crisis of the government but it has opted for it . People , across a wide cross section of society , go through difficulties given the soaring prices of essential items . It is a natural phenomenon for them to expect relief in the budget as a result . Likewise , the government is mindful of strategies for the presidential election expected next year .   

Sri Lanka Podujana Peramuna (SLPP), the principal party of the government, also put forward several requests such as the retention of the Samurdhi welfare scheme , a pay hike for public servants and making financial allocations for the individual MPs to implement development projects in their respective constituencies .  
The government may not accede to these requests in the exact manner the SLPP expects but the party will not vote out the budget . The SLPP has little or no option at this juncture to topple the government. Yet it has to make some populist demands to keep itself afloat in politics during this trying time.