2026 Budget: BOUNTY FOR SOME, DISAPPOINTMENT FOR MANY

The 2026 Budget reading has been scrutinised by many individuals representing various sectors particularly due to the fact that it had either not prioritised on important issues or seems impractical.

- By Kamanthi Wickramasinghe

The government has also been blamed for not implementing proposals included in the 2025 Budget. While certain budgetary allocations, for example to improve physical infrastructure have been estimated at exorbitant amounts, certain other allocations for key sectors have either been slashed, reduced or eliminated.

Current status of the economy

According to Sirimal Abeyratne, Emeritus Professor in Economics at the University of Colombo, the 2026 Budget is a 'very comfortably prepared budget'. He explained that on the revenue side, our actual tax revenue in 2026 has exceeded the original estimate.

“The major point we need to highlight here is the success of the IMF stabilisation programme and guided by that the improved tax collection and tax compliance. An added advantage on the budgetary side would be faster growth in indirect tax collection such as VAT and import duties. Because of these factors the revenue side improved a lot. Then from the government expenditure side, the borrowing needs were being contained this year. The new Central Bank Act which terminate Central Bank finance in the government borrowing needs has also played a role. Lower interest payments is another area that we can highlight as far as the reduction in government expenditure is concerned. Another area is reduction in capital expenditure at a higher rate than the original expenditure. These factors have contributed to have a comfortable budgetary situation this year. That's why the preparation of the 2026 Budget looks quite easygoing compared to all our previous budgets,” he explained.