GOVT. DELIVERS PROGRESSIVE GROWTH AND REFORM ORIENTED BUDGET

After many decades, the government pulled off what was unthinkable for many by presenting a budget which ticks almost all boxes in its fiscal parameters while laying the foundation for a fully fledged digital economy powered by artificial intelligence and led by the private sector.

- By DILINA KULATHUNGA

It is both strong in spending which is sine-qua-non in adding more steam to the economy and equally robust in revenue, without causing pain on any sector or a group of people.

In fact, the budget scored 10/10 in achieving predictability and continuity in government policy in economic management which is going to be welcomed by the private sector.

Some have unsettled though on bringing down the annual revenue thresholds on the Value Added Tax and Social Security Contribution Levy.

But if one is an advocate for widening the tax net, one is unable to find fault with this revenue measure although this is going to be somewhat against the government's desire to raise more money from direct taxes and less from indirect.

One area to watch though is how much of revenue is expected from vehicle imports as vehicle imports may not be as high as what was seen in 2025 and more so because of the lowered Loan-To-Value ratios by the banks.

Although that being a monetary policy decision, it is a positive step to prevent much crucial foreign exchange being drained out of the country as has already seen so far this year with nearly US $ 2.0 billion worth of Letters of Credit have been opened, according to the President.