Budget 2026: Parliament and public deprived of real numbers

THE constitution anticipates that the Sri Lankan Parliament “shall have full control over public finance”.

- BY ANUSHAN KAPILAN AND QADIRAH ISRATH

It exercises this power primarily through scrutinising, amending and approving the annual Budget. In practice, however, the Budgeting system has long been infected by inconsistencies and inaccuracies in the numbers presented to Parliament. Figures in the Budget speech, the estimates and other supporting documents released alongside the Budget often do not align. The 2026 Budget continues this trend, despite the Public Finance Management (PFM) Act mandating greater transparency. As a result, MPs are left debating outdated or inconsistent data, and the public is deprived of a clear understanding of the Government's actual financial plans. Both outcomes weaken Parliament’s oversight role and reduce public accountability.

The documentation gaps

1. Discrepancies in revenue figures between the Budget speech and official estimates

The revenue figures cited in the 2026 Budget Speech do not align with those in the Draft Budget Estimates. For instance, taxes on goods and services are reported as Rs. 3,056 billion in the Budget Speech, but only Rs. 2,938 billion in the estimates, a gap of Rs. 118 billion. Other revenue categories show similar inconsistencies, with no accompanying explanation.

The discrepancy appears to stem from additional revenue proposals included in the speech but not reflected in the disaggregated data provided in the estimates. Since the speech presents only aggregate figures, Parliament lacks access to the detailed breakdown necessary to assess specific tax changes. This undermines Parliament's ability to scrutinise expected revenues and renders the Budget debate less effective.

2. Inconsistent and undisclosed macroeconomic assumptions