It has been planned to reduce the budget deficit to 3.5 per cent of the GNP through a mid-term financial consolidation, said Prime Minister while making a special address in Parliament today (05 November). He added that the new government expects to achieve this target by 2020 while proceeding through its mid-term development programmes.

The Prime Minister further added that the focus would be on reducing the debt burden, making honest and credible efforts towards monetary stability, giving higher prominence to increasing revenue, bringing the mid-term tax revenue percentage to a mid-term level of 80%:20% to 60%:40% by minimising the regressive tax systems, strengthening tax management and by reducing tax immunities and relief measures.

The special focus of the Finance Ministry is towards increasing government revenue and that attention would be focused towards managing recurrent and capital expenditure, said Prime Minister Ranil Wickremesinghe.