The debate on the Second Reading of the 2027 Budget is scheduled to commence in Parliament today (13 November), with proceedings set to begin at 9.30 a.m.
The debate follows the presentation of the 2027 Budget by President Anura Kumara Dissanayake yesterday (12 November), in which the Government projected a budget deficit of Rs. 1.753 trillion, equivalent to 4.5 per cent of Gross Domestic Product (GDP).
The 2027 Budget, the third presented by the National People's Power (NPP)-led Government and the 81st in Sri Lanka's history, estimates total government expenditure at Rs. 7.933 trillion, up from Rs. 7.309 trillion in the 2026 revised estimates.
Presenting the Budget in his capacity as Minister of Finance, Planning and Economic Development, President Dissanayake outlined the Government's commitment to transforming long-standing national aspirations into reality by building a prosperous nation.
He identified poverty eradication, the establishment of a just society, the elimination of bribery and corruption, accelerated economic development, the restoration of public trust and ensuring a decent standard of living for all citizens as key priorities.
The Budget also signals a shift in the Government's economic policy focus from stabilisation towards economic expansion and transformative development, with Rs. 2 trillion allocated for public investment.
According to the Budget estimates, total government revenue and grants are projected at Rs. 6.18 trillion, while total revenue is estimated at Rs. 6.15 trillion.
Tax revenue is expected to generate Rs. 5.667 trillion, including Rs. 1.341 trillion from income taxes, Rs. 3.592 trillion from taxes on goods and services and Rs. 754 billion from taxes on external trade. Non-tax revenue is estimated at Rs. 463 billion, while grants are projected at Rs. 30 billion.
Meanwhile, recurrent expenditure is expected to reach Rs. 5.944 trillion, comprising Rs. 1.41 trillion for salaries and wages, Rs. 2.643 trillion for interest payments and Rs. 1.482 trillion for subsidies and transfers.
The projected budget deficit represents an increase from the Rs. 1.328 trillion deficit recorded in the 2026 revised estimates, equivalent to 3.7 per cent of GDP.
Despite the wider deficit, the Government expects to maintain a primary surplus of Rs. 890 billion, or approximately 2.3 per cent of GDP, while the revenue surplus is projected at Rs. 206 billion.
The Government plans to finance the deficit through Rs. 1.643 trillion in domestic financing and Rs. 110 billion in foreign financing.
Public investment is expected to rise to 5.1 per cent of GDP in 2027, compared to 4.1 per cent in the 2026 revised estimates. The capital investment programme will focus on infrastructure development, including roads, railways, transport networks and logistics, alongside wider economic and social development initiatives.
The Budget comes amid the Government's ongoing economic reform programme and its commitments under the International Monetary Fund's (IMF) Extended Fund Facility (EFF). The IMF's seventh programme review reached a staff-level agreement in November, with the Budget and continued progress on debt restructuring forming part of the programme's requirements.
Meanwhile, the Second Reading debate is scheduled to continue until November 20, with the vote set to take place at 6.00 p.m. on that day.
The Committee Stage debate will be held from November 21 to December 14, with the final vote on the Third Reading scheduled for December 14.
