Finance Minister Anil Jayantha Fernando presented an interim budget to Parliament today, which includes a significant increase in the government’s borrowing limit to Rs. 4,000 billion. This increase was proposed to cover potential delays in the budget process due to technical issues.
The interim budget is aimed at covering expenses for the first four months of 2025. The financial allocations include Rs. 1,000 billion for recurrent expenditure, Rs. 425 billion for capital expenditure, Rs. 1,175 billion for foreign debt restructuring, and Rs. 2,600 billion for servicing existing debt. The total expenditure for this period is estimated at Rs. 2,600 billion, while the government’s revenue is expected to reach Rs. 1,600 billion.
Initially, the borrowing limit was set at Rs. 1,000 billion, but the increase to Rs. 4,000 billion was announced to ensure flexibility in managing unforeseen financial needs.
Minister Fernando also reiterated the government’s commitment to restructuring foreign debt, especially with bilateral debt and sovereign bond issuances, with the goal of completing these agreements before December 31, 2024.
