Budget Highlights 2023
The 77th Annual National Budget was presented in the Parliament on the 14th of November, 2022 by President Ranil Wickramasinghe as Minister of Finance. Through the budget’s execution, the Government’s leading goals are to create a primary surplus of over 2% of the GDP by the year 2025, to boost Government revenue up to around 15% of the GDP by 2023, to reach economic growth of 7%-8%, and to increase Foreign Direct Investments up to more than USD 3 bn per annum by 2033.
When considering the overlook of the national budget, the allocation for total revenue and grants reads LKR 3,415 bn. Compared to the LKR 2,094 bn allocation provided in the previous year’s revised interim budget, this year’s allocation records a 63% increase. The category of total revenue that falls under total revenue and grants, consists of tax revenue (income tax, taxes on goods and services, taxes on external trade) and non-tax revenue. In 2023, tax revenue received an allocation of LKR 3,130 bn, a 69% increase from the previous year’s LKR 1,852 bn, while taxes on goods and services saw an 81% increase to an allocation of LKR 1,763 bn from the 2022 revised estimate’s LKR 972 bn. The total expenditure allocation for the year 2023 is LKR 5,819 bn, which is a 31% increase from the previous year’s LKR 4,427 bn allocation.
The total foreign financing allocation consisting of gross foreign borrowing and debt repayment was presented as LKR 560 bn, a 64% increase from the previous year’s LKR 342 bn. Total domestic financing consisting of non-bank borrowings, bank borrowings, and Sri Lanka development bonds, on the other hand, was allocated LKR 1,884 bn which is a 7% decrease from the previous year’s LKR 1,991 bn. The budget deficit for the year 2023 was presented as LKR 2,404 bn. A 3% increase in the budget deficit was experienced from the previous year’s LKR 2,333 bn.
A more detailed view of the Annual National Budget for 2023 can be found in the linked report. This report breaks down the most significant proposals from the Budget, which will impact your businesses, staff, and personal situation. Please refer to it for more insight into Sri Lanka’s economic prospects in the medium term and send any questions or concerns our way.
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