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The Finance Ministry has issued guidelines for the 2025 national budget, focusing on fiscal discipline and prudent management as part of the Medium-Term Fiscal Framework for 2025-2027. The budget will adhere to the Public Financial Management Act No. 44 of 2024, aiming to ensure fiscal responsibility and efficient allocation of public funds. The ministry highlighted significant improvements in the fiscal position but warned against complacency, stressing the importance of maintaining fiscal discipline and macroeconomic reforms to avoid economic downturns.
The 2025-2027 fiscal strategy targets increasing government revenue to 15.1 percent of GDP in 2025 and 15.3 percent in 2027 through enhanced revenue measures, tax administration, and digitalisation. Government expenditure will be maintained at 20 percent of GDP, with a focus on optimizing public returns, while capital expenditure will rise to over 4 percent of GDP. The strategy also aims to achieve a primary budget surplus of 2.3 percent of GDP and a budget deficit below 5 percent of GDP from 2025 onward, with additional emphasis on legislative reforms and improving revenues from state-owned enterprises.
