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2022 Budget: Import restrictions, local production by private sector
Import restrictions will continue for next year with the aim of improving local production with priority for private sector projects being among the highlights in the proposed 2022 budget, senior Finance Ministry officials said.
With “production economy” as the theme of the November budget now being prepared, the main focus is on agricultural, road development, irrigation and renewable energy sectors with large allocations for the respective ministries, the officials said.
Imports, including vehicle imports, are to remain restricted throughout next year, but import of electric cars is expected to be encouraged in view of an impending energy crisis.
Additional expenditure in the public sector will be curtailed.
The private sector is to be encouraged to undertake major land development projects to ensure that no major foreign loans are taken for them. Accordingly, investments for land projects are set to receive more incentives in the upcoming budget.
Another area set to receive more attention is the tourism sector which is looking for a revival after a setback for three consecutive years. Incentives will be offered to the hotel sector with the aim of raising the annual revenue to US$ five billion.
Incentives will also be offered for fish import projects with a view to raising export revenue.
Under a project titled livelihood development, a proposal will be introduced to set up warehouses in every district to store surplus agricultural products. The private sector will be encouraged to invest in these projects.
As a solution to the teachers’ salary anomaly issue, a proposal will be introduced for the salaries to be increased in stages, provided an understanding is reached, the officials said.