By Vivienne Russell | 27 November 2013
Sri Lanka will next year embark on a medium-term financial plan that aims to reduce it fiscal deficit to 3.8% and boost per capita income to $4,000, the country’s Treasury secretary has told an audience of accountants.
Addressing the Institute of Chartered Accountant of Sri Lanka’s annual budget seminar, Dr PB Jayasundera said the 2014 Budget announced last week by President Mahinda Rajapaksa was part of a three-year strategy to run to 2016/17.
‘The budget has been framed as a medium-term plan from 2014 to 2016 and should not be considered as a budget presented for a 365 day period,’ he said.
Accordingly, the government forecasts a 5.2% reduction in fiscal deficit by December 2014, followed by a 4.5% deficit in 2015 followed by a 3.8% deficit by 2016.
In 2006, Sri Lanka published a ten-year development framework setting out several targets, including one to improve its economic status and become a middle-income country with per capita income of $4,000. In 2005/06, the fiscal deficit was 9.9% and per capita income $1,000.
‘We should not only be statistically strong, but also be economically strong,’ Jayasundera said.
‘Middle-income countries are not run with deficits, they are run with [a] comfortable macro framework.’
Meanwhile, CA Sri Lanka’s public sector wing has embarked on a campaign to raise awareness of new accounting methodologies and latest accounting standards.
The Association of Public Finance Accountant of Sri Lanka (APFASL) has run a series of programmes covering accrual-based accounting, asset management and the Sri Lanka Public Sector Accounting Standards.
Sessions were targeted at chief accountants, accountants, internal auditors, treasurers and other professionals involved in the preparation and presentation of financial statements in government ministries, departments and municipal and urban councils.
