The Hon. (Dr.) Prasanna Gunasena — Deputy Minister of Transport and Highways

¶ 01 Hon. Deputy Chairperson, thank you.

¶ 02 As Lenin noted in “Imperialism: The Highest Stage of Capitalism,” global markets are constantly partitioned and re-partitioned through struggle. Against that backdrop, after our first Budget under our administration stabilized a once-bankrupt economy, we present our second—and the 80th in our parliamentary history.

¶ 03 Budget revenue for 2026 totals Rs. 5,305 billion: Rs. 4,850 billion from VAT, excise and other taxes; Rs. 425 billion from departmental revenue, rents, dividends; and about Rs. 30 billion in grants. As a share of GDP, revenue reaches about 15.3–15.4%—the highest in two decades, and we aim higher. This revenue performance yields collateral benefits: in debt restructuring, due to meeting 2026–27 targets and publishing a fiscal framework on time, creditors have agreed to reduce average annual interest by 0.75% for 2028–2035, saving about USD 7.9 million per year in debt service. Stabilization brings such gains.

¶ 04 On expenditure, interest and amortization in 2026 total Rs. 2,617 billion. Recurrent spending includes Rs. 1,464 billion for salaries, Rs. 530 billion for pensions, and Rs. 1,131 billion for other recurrent, totaling Rs. 3,105 billion. Capital expenditure is Rs. 1,380 billion—a significant provision. Total public expenditure will be maintained at about 20.5% of GDP, with the deficit around 5.1% of GDP.

¶ 05 We are negotiating with the IMF and must maintain fiscal discipline and primary balance targets. The IMF sought a primary surplus of 2.3% of GDP; we are on track to exceed that in 2026 and beyond. Public debt was about 128% of GDP in 2022; targeted to 114% in 2024; to 96.8% in 2026—better than the IMF’s 100% glide path—and to 87% by 2030.

¶ 06 Some in the Opposition seem not to grasp these indicators. While the President presented the Budget, some dozed—waking only at the mention of cabs to ask if they could take them home after five years. Let me be clear: vehicles are for official use and must be returned.

¶ 07 Citing newspapers, an Opposition MP claimed only Rs. 272 million was spent out of billions for rural roads. Let’s present the facts. The “Road to Revival” rural roads programme runs via two channels: through the RDA using direct labour, and through District Secretaries.

¶ 08 Under the RDA direct-labour track, 288 roads were slated; 154 have been awarded already, at a value of Rs. 4,775 million, and Rs. 2,039 million has been fully spent so far. Through District Secretaries, 1,145 roads are in the programme; 511 completed, 538 ongoing. So where did the “Rs. 272 million” figure come from? The numbers speak for themselves.

¶ 09 We will continue to deliver across all sectors—with a comprehensive, people-focused Budget that even considers animal welfare. But Members should not expect to take State vehicles home. Thank you.