“Implementation and monitoring of budget proposals vital”

Committed implementation and monitoring of budget proposals is vital in promoting economic growth and achieving economic stabilization process, The Institute of Policy studies Executive Director Dr. Dushni Weerakoon said.

Highlighting the need to kick in broader structural reforms, Dr. Weerakoon emphasised the need to work on concrete, doable reforms in particular on the expenditure side. Dr.weerakoon expressed these views speaking at the Post budget forum on National Budget 2023 held at the Central Bank Auditorium yesterday (15).

“In addition, it is essential to strengthen political and economic institutions and demand accountability when needed,” she asserted. Noting that the crisis needs concrete reforms, Dr.Weerakoon said that it is required to put much emphasis on social protection to give a helping hand to vulnerable segments of the society.

Speaking further, Dr.Weerakoon stated the government’s expected revenue target of 3.4 trillion rupees, up 65 per cent, is somewhat optimistic. Moreover, Dr. Weerakoon said labour market reforms as put forward as budget proposals are absolutely essential given the current demographic changes mainly due to shrinking labour market conditions.

“Macro stability has also to be strengthened .It is essential to support growth, productivity and be competitive to spur growth. But I’m hesitant to say that we have put forward some concrete reforms in place to achieve all of these targets.”

Speaking further, Dr.Weerakoon added that Sri Lanka’s tertiary education required mixed funding to produce competent employment opportunities instead of following traditional ways of producing graduates. Speaking on State owned enterprise reforms, Dr.Weerakoon stressed the need to reallocate resources to economic activities that drive growth and help poorer segments of the society. The combined effects of the economic stabilization process will lead to sharp output contractions and the recovery path from the immediate impact may vary.

Dr.Weerakoon said, “ Even if we assume that Sri Lanka is able to overcome the crisis in 18 months , we will not be able to recover output losses, not even in two years.