Due to the current situation of the economy, preparing the budget has become a grave task, Minister for Special Assignments Dr. Sarath Amunugama stated yesterday

Speaking at a medie briefing, the minister indicated that it is going to be a challenge to pay back foreign loans. The next premium would cost nearly Rs 2 billion, out of which Rs 1.5 billion is to be paid to China, he said.

From the budget a greater part should be allocated to pay salaries of the government servants, maintaining government institutions and to pay back loans.

Amunugama said that year by year the amount of money to be paid for the loans are getting expanded like a balloon.   

Since the development projects started by the last government are not profiting enough to pay the loans, it has become a very unfavorable situation to the country, he added.

The government is considering possible alternative solutions and the VAT will have to be introduced back in a different manner, he added.  

Minister Amunugama further mentioned that Sri Lanka Freedom Party has appointed a special committee to look into VAT policy and it has given some suggestions. If these suggestions are included in the VAT bill, he will give fullest support to it, he said.