In a pivotal parliamentary session today, the government is set to unveil the highly-anticipated annual budget for 2024. The preparation for this financial roadmap has been marked by significant challenges as leaders navigate the delicate task of balancing the stringent conditions imposed by the International Monetary Fund (IMF) with the imperative to provide concessions to the public, especially in light of the upcoming national elections next year.
Aligned with the IMF program, the government faces the crucial task of meeting year-end revenue targets while implementing austerity measures to curtail state expenditures. Despite the non-populist nature of adhering to these measures, their importance lies in ensuring the long-term stability of the economy and regaining lost growth momentum.
The preparation of the budget proved arduous for government leaders, including President Ranil Wickremesinghe, as they negotiated with the IMF to secure relief measures, particularly for public servants. The Cabinet’s commitment to a pay hike for public servants, although exacerbating the government’s revenue crisis, underscores the acknowledgment of the people’s difficulties amidst soaring prices of essential items. Public expectations for relief in the budget are heightened, and the government is also mindful of the strategic implications for the upcoming presidential election.
The Sri Lanka Podujana Peramuna (SLPP), the principal party in the government, has presented various requests, including the retention of the Samurdhi welfare scheme, a public servant pay increase, and financial allocations for individual MPs to implement constituency-based development projects.
While the government may not fully accede to the SLPP’s requests, the party is unlikely to vote against the budget, recognizing the limited options available to topple the government at this juncture. Amid these challenges, the SLPP strategically makes populist demands to navigate the complexities of politics during this trying time.
