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Economists, policy makers and MPs meet to dissect Budget 2025
View(s):Concerns over economic disparities, tax amendments, and the government’s approach to public sector reforms were highlighted during a closed-door Budget 2025 discussion at Solis Hotel, Pitakotte.
The discussion, organised by the One-Text Initiative, brought together economic experts and policymakers, as well as current and former parliamentarians.
Providing an in-depth analysis of the budget, Professor Priyanga Dunusinghe noted that the proposals followed a familiar pattern of combining liberal macroeconomic policies with welfarist micro-level interventions. However, inconsistencies were evident, particularly in taxation policies.
While the budget deficit has been projected at 6.7%, surpassing the IMF’s estimated 5.2%, the professor said that concerns remained over whether revenue targets would be met, especially given the high reliance on tariffs, particularly on vehicle imports. Parliamentarian Gajen Ponnambalam emphasised the ongoing economic struggles of the North-East region, questioning whether the government has made genuine efforts to integrate war-affected communities into the national economy.
He called for a comprehensive needs assessment and policy framework, warning that the continued economic neglect could lead to further migration and disillusionment among Tamil communities.
Former Minister Champika Ranawaka underscored the need for restructuring the public sector, highlighting inefficiencies across 1,200 public institutions. Instead of streamlining operations, however, the government allocated Rs. 20 billion to SriLankan Airlines, he pointed out.
On the digitalisation front, the introduction of an e-rupee and a unique identification number system were seen as promising measures to improve revenue collection. However, resistance from entities such as the Inland Revenue Department (IRD) has slowed down implementation. If successfully enforced, these reforms could increase revenue collection by up to 50%, it was noted.
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