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Press briefing of Cabinet Decision taken on 2022-08-22
Preparation of the Annual Budget for the year 2023
- The fiscal imbalance caused by decline of Government revenue and escalation of public expenditure in the long run, has turned into a severe economic crisis at present. Amidsts the economic challenges related thereto, the budget for the year 2023 has to be prepared within the medium term budgetary framework, through a more prudent and strategic approach and measures have to be taken to prevent the present economic crisis from being worsened and lay the foundation for future sustainability. Accordingly, based on the Public Finance targets expected to be achieved within the medium term budgetary framework 2023-2025, it is envisaged by the Budget for the year 2023 to accomplish the task of escalating the Government revenue from present 9% to 11.3% to reduce Government expenditure from present 18.9% to 18.1%, the Primary budget balance from - 4% to -1% and the budget gap from -9.9% to -6.8% of the GDP. Further, it has been planned to prepare the budget estimates for the year 2023 on Zero-Based Budgeting method. Accordingly, the proposal made by the Hon. President in his capacity as the Minister of Finance, Economic Stabilization and National Policies pertaining to the preparation of budget estimates for the year 2023, was approved by the Cabinet.