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Public servants to get pay hike in budget
View(s):- Fertiliser subsidy, Aswesuma benefits are to be increased; no hike in pension
By Damith Wickremasekara
An increase in the basic salary or allowances of public sector employees is under consideration by the government as it prepares to present its maiden budget next month.
According to Treasury officials, the possibility of salary increments up to Rs 7,500 a month was within the current financial position, but a higher increase would depend on a decision taken by President Anura Kumara Dissanayake in his capacity as finance minister.
An increment is being considered as public servants’ basic salaries had not been increased for the past several years, the officials said.
However, an increase for the pensioners will not be included in the budget to be presented on February 17 in Parliament.
The government is set to focus on a production economy with attention on attracting the rural sector for its contributions towards the growth of exports.
An increase in the fertiliser subsidy, increasing the number of Aswesuma beneficiaries and their allowances, social welfare benefits, concessionary loan schemes, and benefits to the agriculture and fisheries sectors aimed at increasing exports are among the other proposals considered.
Among the biggest revenues the Treasury is targeting through the budget is the revenue from the vehicle import taxes. The government is expected to earn an estimated Rs 450 billion from vehicle import taxes. Increasing the tax net and the introduction of measures to prevent tax evasion are also to be announced in the budget.
Foreign-funded projects amounting to more than US$ 2 billion are also to be announced.
Among the limitations in preparing the budget has been the Public Finance Act, which requires the government to maintain a budget deficit under 13 percent of the GDP.
The budget is being prepared under the framework of the International Monetary Board (IMF), and a consultation process is expected to take place soon.
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