Interim Budget Exposes UNP Lies in Black and White
Posted on February 12th, 2015

Dilrook Kannangara

Despite some key inputs from the President, the budget was basically a UNP affair. The lies made to the public by the interim government are shocking! Any numerically literate person would see at a glance that the UNP is not keen to abolish or change the executive presidency, give the promised salary increase or develop the country any better than the previous government did. Please visit the website of the treasury and its budget page.

http://www.treasury.gov.lk/images/depts/nbd/docs/budgetestimates/2015/approved/4.Expenditure/Expenditure.pdf

Sirisena Spends More Than Mahinda!

It is revolutionary to say the truth in Sri Lanka today. But it is a fact President Sirisena spends or budgeted to spend more than Mahinda; Rs.110.7 million more to be precise. The interim budget allocates Rs. 4.9 billion for 2015 for the President whereas it was Rs.4.8 billion for 2014. Definitely there is an increase in expenses for the President. Despite the increase, the government propaganda machine lies to the people about reducing the president’s allocation and exuberant spending by Mahinda. Well, Sirisena will be spending even more. Where are the billions said to be reduced from the president’s allocation?

Executive Presidency and Powers to Continue

The worst part is President Sirisena’s allocation increases every year. 2016 and 2017 projections show President Sirisena’s allocation increasing to Rs.4.98 billion and Rs.5.09 billion in these future years. Obviously a president with less powers than now doesn’t need an increasing budget.

Therefore it is crystal clear the interim UNP government is not keen to change the executive presidency. Allocation for the Prime Minister has also increased.

Reduction for the Auditor General Department

Before the election the Sirisena front promised to strengthen good governance, transparency and the national audit function. In reality the Auditor General department has been curtailed with a large budget cut of over 10% from Rs.826 million in 2014 to Rs.739 million in 2015. How can the state sector auditors do a proper job when resources are taken away from them?

The underlying reason is clear. The new government plans to set new records in corruption, fraud and waste and keep the public in the dark by making the Auditor General Department impotent. It will also not go hard on corrupt politicians and officers of the previous government. The audit function is essential to keep the public sector in good financial standing and to frame the wrongdoers.

An Astronomical Increase for the Department of Elections

Department of Elections has received the highest increase in the interim budget. Its Rs.2 billion budget has increased to Rs.3.6 billion which is an 80% increase. Further increases are projected for 2016 and 2017. Government intention is to hold elections for the parliament, provincial councils and local governance bodies before their term expires to employ the large UNP grassroots level organisers. This Rs.1.6 billion should have been better utilised in healthcare and education.

Such a tremendous increase also raises eyebrows as to the independence of the Department of Elections. Salary increases and other benefits for Department of Elections employees will also come out of this allocation.

Reductions for Ministry of Buddha Sasana and Religious Affairs and Ministry of Defence and Urban Development

While all ministries get increases for the 2015 budget, the Ministry of Buddha Sasana and Religious Affairs and Ministry of Defence and Urban Development suffer budget reductions. This can be understood in the context of the external supporters of the Sirisena coalition who wish to see the dilution of the national identity. It bodes badly with the wellbeing of the nation.

Ministry of Finance and Planning Under Ranil Gets An Increase of 850% in Capital

Ministry of Finance and Planning capital budget for 2014 was just Rs.37 billion. It has been increased to a staggering Rs.352 billion in 2015. That is an increase of Rs.315 billion (close to US$3 billion). As Prime Minister Ranil is in charge of the Ministry of Finance and Planning, it raises doubts as to the intention of the interim government. Does the $3 billion relate to loan repayment routed through the Ministry of Finance and Planning?

Meanwhile essential sectors are left out.

Ministry of Power and Energy and Ministry of Water Supply and Drainage Denied Vital Capital Funds

Power and energy and water supply are two key areas needing urgent investments. However, they have been starved of investments by the interim budget. Ministry of Power and Energy capital budget has been reduced from Rs.32 Billion to a paltry Rs.39 Million. Power and energy infrastructure will suffer enormously.

Water Supply and Drainage also suffers a reduction of Rs.23 billion which is another key infrastructure area needing urgent attention. National development will be severely hampered by the step motherly treatment given to them.

No Promised Public Sector Salary Increase

The most crucial election winning promise of the Sirisena coalition was the much hyped Rs.10,000 salary increase for the public sector. However, the overall budget for personal emoluments has risen by a measly Rs.24 billion from 2014. Given the size of the public sector, that is sufficient only to award a salary increase of Rs.3,000. The promised Rs.10,000 will not be given. According to the Finance Minister, a salary increase of Rs.5,000 would be given initially and the remaining Rs.5,000 will be paid after June. Out of this Rs.5,000, a sum of Rs.2,000 was granted by the Mahinda government. Therefore the additional payment by the new government is only Rs.3,000.

Voters have been taken for a ride. Trade unions must demand the full increase of salary by the promised Rs.10,000 a month.

Conclusion

Contrary to the propaganda campaign of the government against the former president and his Cabinet of ministers alleging corruption and exuberance, it is the new UNP government that is wasteful and deceitful. Their doublespeak can be identified in the interim budget which provides no money for the proposed salary increase, national development, higher education allocation equally 6% of the GDP and vital infrastructure projects. They were all election time lies.

Alleged exuberance on the part of the former president is also not reflected in the budget as President Sirisena has a fatter budget than Mahinda. The new government follows the propaganda theories of Goebbels of fooling the people by telling a big enough lie with sufficient repetition. How long can the UNP fool the people? People have been taken for a ride and there is no reset button.

27 Responses to “Interim Budget Exposes UNP Lies in Black and White”

  1. Independent Says:

    Dilrook,

    I believe your analysis has based on (the hyperlink here ) as UNP budget is in fact ex-president’s budget estimate for 2015 together with 2016 – 2017 predictions.

    If you add the allocation for the president 4916270,000 recurrent and capital expenditure 4677250,000 you will get 9593520, 000 which was quoted by ex-president in his letter to current president.

    UNP’s new budget probably has not been published, I think.

  2. Ananda-USA Says:

    Ado Yakko “Faceook” Dependent!

    Are you STILL dancing your EELAM KOLAMS here, trying to convince PATRIOTS you care about Sri Lanka?

    Desperately TRYING to shed the EELAMIST sheepskins now that your have done your WORST to OUST the PATRIOTIC GOSL???

    BEGONE ….BUGGER OFF … BLOODY EELAMIST HYPOCRITES!

  3. Independent Says:

    Mr. USA,

    Please take your medicine.

    I don’t even have a Facebook.
    I am not going bugger off , Moderator will act if when it is necessary at a later stage. I have no power but I have a sound functioning mind. Do not try to kill me. It shows who you are ,no need to explain.

  4. Ananda-USA Says:

    Ado Yakko Dependent,

    You SHOWED your true EELAMIST colors before the election!

    BUGGER OFF with your Maximum Leader “Facebook” LOrenzo to dance your KOLAMS ELSEWHERE! BLOODY HYPOCRITE!

  5. Ananda-USA Says:

    India is just “wary”, but Sri Lanka is being SCREWED! BULLSHIT … I say!

    Indians are NOT WARY; they are ECSTATIC; this is their DREAM COME TRUE … in their MYOPIC short term view!

    This UNDERSCORES the URGENT NEED to REPEAL the 13th Amendment, DISSOLVE all Provincial Councils. INSTITUTE a District System administered by GOSL APPOINTED Government Agents.

    1. Large Provinces governed by Sri Lanka’s enemies have the POWER to UNDERMINE the Central Government and ENABLE separation into independent Ethno-Religious fiefdoms.

    2. The Northern and Eastern Provinces have large coastlines. With Land & Police powers they will be able to engineer a large INFLUX of foreigners to settle in Sri Lanka …. in particular Tamils from Tamil Nadu, and Muslims from the Middle East, Maldives and elsewhere.

    3. The Provincial Council bureaucracies are an UNNECESSARY FINANCIAL BURDEN, and CREATE MORE RED TAPE BARRIERS to HARASS the citizenry of Sri Lanka, that is ALREADY OVERRUN with corrupt officials milking them. Local town, city and district administrations with an ELECTED central government to secure and develop the nation as a whole, IS ENOUGH GOVERNANCE, MORE THAN ENOUGH FRANCHISE!

    END THIS COMMUNAL Provincial Council FOOLISHNESS threatening to DIVIDE Sri Lanka into ETHNO-RELIGIOUS Bantustans NOW!

    Aiyoooo …. Srisenaaaaa …… What are you DOING to our Motherland!!

    …………………..
    Sri Lanka’s Northern Province resolution: Indian officials wary

    ColomboPage News Desk, Sri Lanka.

    Feb 11 (Hindu) The Indian government took note of the resolution by the Sri Lankan Northern Provincial Council internally, but officials said it was too early to gauge its importance to the reconciliation process already initiated by President Maithripala Sirisena’s new government.

    Officials are studying if the genocide resolution would affect the Geneva conference of the UNHRC, where the U.N. special rapporteur is due to submit a report on a U.S.-sponsored “war crimes investigations” that could also lead to a resolution against Sri Lanka being tabled. India would be keen to see any such resolution put off, it is understood, so as to allow the new Sri Lankan government time to implement its promises to the Northern provinces.

    India not for war crimes probe against Sri Lanka

    Any attempt to challenge the new government in Colombo with an international genocide investigation at this point could “complicate matters,” sources in New Delhi have said.

    The U.N. special rapporteur is expected to submit a report on a U.S.-sponsored “war crimes investigations” and a resolution on Sri Lanka’s ‘genocide against Tamils’ could also be tabled then. India has traditionally opposed any international investigation into war crimes in Sri Lanka, a position that led to India abstaining from the U.S.-backed resolution at the UNHRC in March 2014.

    Sources told The Hindu that the issue of reconciliation and rehabilitation for the Tamil-dominated areas will be a key issue when President Sirisena meets with Prime Minister Narendra Modi next week. “The government will be keen to discuss the new government’s plans as well as the just-started talks on repatriation of 1 lakh Sri Lankan refugees living in India.”

    In Delhi last month, Foreign Minister Mangala Samaraweera, who met with Mr. Modi and External Affairs Minister Sushma Swaraj, said that the Sirisena government would implement a “credible domestic mechanism” for reconciliation, but wouldn’t allow any international inquiry into allegations of human rights violations during the war against the LTTE.

    President Sirisena will visit India from February 15 to 18, his first international engagement since he was sworn in.

    …………………..
    Sri Lanka’s Northern Province resolution: Indian officials wary

    ColomboPage News Desk, Sri Lanka.

    Feb 11 (Hindu) The Indian government took note of the resolution by the Sri Lankan Northern Provincial Council internally, but officials said it was too early to gauge its importance to the reconciliation process already initiated by President Maithripala Sirisena’s new government.

    Officials are studying if the genocide resolution would affect the Geneva conference of the UNHRC, where the U.N. special rapporteur is due to submit a report on a U.S.-sponsored “war crimes investigations” that could also lead to a resolution against Sri Lanka being tabled. India would be keen to see any such resolution put off, it is understood, so as to allow the new Sri Lankan government time to implement its promises to the Northern provinces.

    India not for war crimes probe against Sri Lanka

    Any attempt to challenge the new government in Colombo with an international genocide investigation at this point could “complicate matters,” sources in New Delhi have said.

    The U.N. special rapporteur is expected to submit a report on a U.S.-sponsored “war crimes investigations” and a resolution on Sri Lanka’s ‘genocide against Tamils’ could also be tabled then. India has traditionally opposed any international investigation into war crimes in Sri Lanka, a position that led to India abstaining from the U.S.-backed resolution at the UNHRC in March 2014.

    Sources told The Hindu that the issue of reconciliation and rehabilitation for the Tamil-dominated areas will be a key issue when President Sirisena meets with Prime Minister Narendra Modi next week. “The government will be keen to discuss the new government’s plans as well as the just-started talks on repatriation of 1 lakh Sri Lankan refugees living in India.”

    In Delhi last month, Foreign Minister Mangala Samaraweera, who met with Mr. Modi and External Affairs Minister Sushma Swaraj, said that the Sirisena government would implement a “credible domestic mechanism” for reconciliation, but wouldn’t allow any international inquiry into allegations of human rights violations during the war against the LTTE.

    President Sirisena will visit India from February 15 to 18, his first international engagement since he was sworn in.

  6. Susantha Wijesinghe Says:

    ANANDA !!!Fully endorse your suggestion to SCRAP the provincial Councils and appoint Government Agents. That was a very fine system. Vigneswaran is getting cocky trying to Internationalize Domestic Problems. He is under the assumption that My3 is very weak and cannot resist him. For a start, the Northern Provincial Council should be dissolved, and Vignesvaran charged for contempt of the Sri Lankan Constitution. I wonder whether My3 has the spine to do it. Also Parliament must enact laws to stop these TNA buggers going as prostitutes, to various countries, complaining that their sexual desires are not met in Sri lanka. This law should be for all Sri Lankan Politicions.

    India wants to shy away from the Human Rights arena, as IPKF murdered, raped, stole Gold Jewellery from the Northern Tamils. So they will not press on the International Inquiry.

    Those buggers at the table should be marked and not allowed to step into the beautiful Island, period.

  7. Ananda-USA Says:

    Aiyoooo Sirisenaaaa …. Is this a PART of your balleyhooed “Yahapalanaya”??

    If you don’t ACT NOW as the Minister of Defence and President to SUSPEND the Northern Provincial Council and INDICT its members for TREASON, then you are UNWILLING & INCAPABLE of DEFENDING OUR Motherland!

    Defending the Nation is YOUR FIRST & HIGHEST DUTY; ACT NOW or RESIGN!

    Aiyoooo Sirisenaaaa ….. What are YOU DOING to our Motherland??

    …………………..
    Sri Lanka’s Northern Provincial Council adopts resolution calling for an international investigation on ‘genocide’

    ColomboPage News Desk, Sri Lanka.

    Feb 10, Colombo: The Northern Provincial Council in Sri Lanka Tuesday adopted a resolution calling for an international investigation into alleged acts of genocide committed against the Tamils during the war.

    Northern Province Chief Minister C.V. Wigneswaran presented an amended version of the resolution calling for an international inquiry on genocide against Tamils committed by the successive governments since the country’s independence from the British in 1948.

    The resolution notes that the obligation to prevent and punish genocide under the Genocide Convention is not a matter of political choice or calculation, but one of binding customary international law.

    In the resolution, the NPC has urged the team appointed by the UN High Commissioner for Human Rights to investigate the war in Sri Lanka, to comprehensively investigate and report on the charge of genocide in its submission to the UN Human Rights Council in March 2015.

    “During the war, government military forces engaged in deliberate aerial, artillery, and naval bombardment of civilian areas and also used prohibited weapons and ammunitions, such as cluster bombs. According to UN estimates, 60 – 100,000 Tamil civilians were killed over the course of the 27-year-long war. The large scale and severe nature of the genocide also forced many Tamils to flee the North East Provinces and seek refuge in Tamil Nadu and Western countries,” the resolution has stated.

    The resolution described that the case of genocide in Sri Lanka is unique among genocides in history because it occurred over several decades and under different governments before intensifying into a “no-holds-barred war” for nearly three decades and culminating in the mass atrocities of 2009.

    “It is accordingly vital that Sri Lanka’s historic violations against Tamils, in addition to the 2009 attacks, are addressed through an international mechanism in order to combat Sri Lanka’s institutionalized impunity,” it said.

    The resolution has further noted that the UN Security Council should refer the situation in Sri Lanka to the International Criminal Court for prosecutions based on war crimes, crimes against humanity, and genocide adding that alternatively or concurrently, domestic courts in countries that may exercise universal jurisdiction over the alleged events and perpetrators, including but not limited to the United States, should prosecute these crimes.

  8. Ananda-USA Says:

    Susantha,

    Thank you for your support, and commonsense grounded in reality.

    The MORE the GOSL turns a BLIND EYE to the TREACHERY of the TNA, the MORE AGGRESSIVE, DEMANDING and TREASONOUS they will become.

    Just like those MURDERERS of the Islamic State, the TNA understands only ONE THING: the CUTTING EDGE of a SWORD! Spare the SWORD and SPOIL the SEPARATIST TRAITORS …. I say!

    PUNISH them NOW … to the FULLEST EXTENT OF THE LAW!

  9. ranjit Says:

    Susantha you area damn correct about these Gobellls. All provincial councils should be dissolved and appoint GA’s like in the past. This crooked Govt must be kicked out soon. They were cheating the public from the beginning. Must investigate how MY3 switched sides and who was responsible for the change and who Financed their election propaganda machine etc. Also foreign currency found in Ratmalana and the Rajitha’s tape conversation,Champaka’s photo gimmick etc.

    TNA should be banned completely for working against the country and for their activities and comments. MY3 Govt must monitor the foreigners who are coming to this country in the name of democracy and poisoning the minds of the people in North and East. They must stop foreign Govts & NGO’s who are meddling in our affairs. We can see coming colors are no good with these visits of foreigners to the North & East than before. Gota knew these White Mafia and he put restrictions on them to safeguard our country but now they have all the freedom to move around same like UNP allowed L.T.T.E terrorists to go around the country during the war.

    Who made crimes against humanity the LTTE or the Govt of Sri Lanka? Who killed innocent civilians in Anuradhapura,Aranthalawa and many other towns and cities? Who started suicide bombs? Why the Sri Lankan Govt do not ask these questions and why they do not take action against the terrorist movement who killed people in cold blood. Why not investigate Batalanda and the killings of our Intelligence heroes by UNP? All this should investigate before any other Investigation. Sri Lankan public needs all the answers not only one side but both sides. Sinhalaya must open his eyes if not a big disaster will fall on our beloved homeland.

  10. Dilrook Says:

    Independent:

    These are based on the budget presented and passed by the new government. The extent of lying is unprofessional for some MPs and officers holding professional qualifications and associations.

    Capital expenditure of the president is also in the link provided in the capital section.

  11. Independent Says:

    Dilrook,
    Thanks for the reply.

    No idea why you wrote “The extent of lying is unprofessional for some MPs and officers holding professional qualifications and associations.” But I agree with the content of the sentence, of course.

    If you had checked the PDF file, it is last modified Dec 29 , 2014 and MR quoted 959 koti as his estimate which is obtained by this PDF.
    So, in my view , this PDF has nothing to do with UNP’s budget.

  12. NeelaMahaYoda Says:

    Independent:

    Ananda-USA is correct.

    It is really pathetic to notice that your comments are always aiming at create a doubt on the issue in order to white wash the new regime. Please be more specific next time. The hyper Link is there to give the base case when he scrutinise the interim budget details.

    Interim Budget details are given in
    http://www.treasury.gov.lk/images/depts/fpd/docs/budgetspeech/2015-jan29/InterimBudget2015-20150129-eng.pdf

  13. Independent Says:

    NMY,
    I don’t agree with you. I downloaded that document few days ago to check 10000 koti (against 959 koti) debacle. I confirmed 959 as correct using that. (Please see my comments there). So, this 959 koti is Mr’s budget as I can understand. There is no malice.
    Can you show me how these 4.9 billion is obtained in interim budget ? Don’t follow Mr. USA. Just teach me if I am wrong. Why are people get so agitated seeing someone, with sufficient evidence, deciding MS as the better candidate in the lection. I did not do ANYTHING bad. I did not do ANY paapakamma. I am a keeper of all 5 precept for 20 years.

  14. SenaD Says:

    Ananda-USA Says:
    February 11th, 2015 at 4:06 pm

    Ananda-USA, you have dealt with all the important aspects of the problem the country faces now.

    The resolution passed is similar to the UDI declaration by V Perumal of the EP. That resulted in the EP’s dissolution.

    President MS, please act now as the leader of the nation and not as a lackey of RW and CBK and their mentors!

  15. Independent Says:

    NMY,
    Please read my comment ( the 1st one) and look at that tables from 2015 PDF. I have clearly explained how MR’s total budget is 959 koti, using that table.
    What confusion I purposely created to “white wash” ?
    What do I get by white washing a politician 6000 km away. FYI , I have been spending a 100% honest life 60 years.
    Don’t be so mean to your fellow engineer. Just tell me what is wrong in my argument.
    I am saying that link has not been updated to reflect the new budget and I still believe I am right.

  16. Dilrook Says:

    Independent:

    My apologies for not giving the link provided by NeelaMahaYoda. Thank you.

    You have to put the two together (approved budget and the changes) to see the impact. The assertions made here remain valid. If the new government intended to do their promised plan, the budget + changes must indicate it. Isn’t it?

    A good comparison is the amendment brought by Mahinda in early 2006 to the approved budget under Chandrika. That had the “Mahinda Chinthana” inbuilt to it.

    Ravi is a member of a professional accounting body and so are all seniors at the Treasury. They should not have been party to deliberately fooling the people.

  17. Dilrook Says:

    It makes little sense in blaming the old rulers now. Substantial changes to his funding preferences should have been made. But as can be seen from the two links, it has not happened.

  18. Independent Says:

    Thank you very much Dilrook.

    To be that interim sheet it absolutely rubbish. It is highly unprofessional and even though I am not in that profession I can read the Singapore budget and understand everything.
    As I said, that PDF is Dec 2014. They have to update it and show where they make the savings and where they spend more. Simple as that.

    I don’t know why these people trying to kill me for asking this question. It is exactly like MR regime westerners complaining. How could MR supporters could somehow ( if they love him so much) manage to bring him back by barking like German Sheppards ? Am I to accept every article against the government without thinking ?

  19. Fran Diaz Says:

    Readers of the Lankaweb must ask themselves why it is that the 6-A was not activated. The 6-A would have protected Sri Lanka long ago – during CBK/Ranil times especially.

    Yes, the entire 13-A should be removed too.

  20. SA Kumar Says:

    why it is that the 6-A was not activated.- agreed also 13A as well both act should implement fully over night ( if one can implement sinhala only act over night this can be possible as well ) because both are law of land also will avoid any divide in mother Lanka.

  21. Fran Diaz Says:

    How do Lankans intend to balance their sense of Independence with the international money market ?

    That is the big problem that the CBK/Ranil/Sampanthan trio are capitalising on.
    Definitely, the 6-A must be activated and the 13-A must go, if Lanka is to survive as a so called (at least) Independent nation.

    Under CBK/RW/Sampanthan trio Lanka will become a slave state of other countries.

  22. Indrajith Says:

    ‘මහින්ද සමග රට දිනවීමට ඔබ සූදානම්ද රැලිය’ 18 දා

    “මහින්ද සමග රට දිනවීමට ඔබ සූදානම්ද?” යන මැයෙන් ලබන 18 වැනිදා පස්‌වරු 3.00 ට නුගේගොඩ ආනන්ද සමරකෝන් එළිමහන් රංග පීඨයේ දී ජාතික රැලියක්‌ පැවැත්වීමට කටයුතු සංවිධානය කර තිබේ.

    ජාතික නිදහස්‌ පෙරමුණ, මහජන එක්‌සත් පෙරමුණ, ප්‍රජාතන්ත්‍රවාදී වාමාංශික පෙරමුණ හා පිවිතුරු හෙළ උරුමය යන පක්‍ෂ මෙම රැලිය සංවිධානය කර ඇත.

    මහජන එක්‌සත් පෙරමුණේ නායක දිනේෂ් ගුණවර්ධන, ජාතික නිදහස්‌ පෙරමුණේ නායක විමල් වීරවංශ, ප්‍රජාතන්ත්‍රවාදී වාමාංශික පෙරමුණේ නායක වාසුදේව නානායක්‌කාර හා පිවිතුරු හෙළ උරුමයේ නායක උදය ගම්මන්පිල යන මහත්වරුන් ඇතුළු දේශපාලන පක්‍ෂ නායකයන් රැසක්‌ මෙම ජාතික රැලිය ඇමතීමට නියමිතය.

    ඉකුත් ජනාධිපතිවරණයේ දී මහින්ද රාජපක්‍ෂ මහතාගේ ජයග්‍රහණය වෙනුවෙන් කැපවූ සියලු ජන කොටස්‌ වෙත මෙයට සහභාගි වන්නැයි එම පක්‍ෂ ආරාධනය කරයි.

  23. SA Kumar Says:

    the 13-A must go,- is untouchable because it is Indian baby (Congress & BNP in power) also our law of land( only can amend by 2/3 majority & referentam).
    We both community know 13A is first stone of TE but Indian purpose of indo-Lanka accord(end result 13A) is united Mother lanka like Union states in India.
    so to united Mother Lanka 6A must implement immediatly with 13 A .

    ONLY 13a will go in our next Eelam war V!
    because We Hela-Demilaya want TE no less no more !!!

  24. Ananda-USA Says:

    MORE EXCUSES to HIDE FUNDING SHORTFALL for RECENTLY ANNOUNCED GOVERNMENT GIVEAWAYS! Financial REALITIES begin to STRIKE HOME!

    Biwwa Neda Yahapalanaya Sudiya?
    Biwwa Neda Yahapalanaya Sudiya?
    Aney Magey Sirisena Paney,
    Pewwa Neda Borupalanaya Sudiyaaa?

    …………………….
    Sri Lanka’s revenue collection slows down impacting 100- day programme

    www DOT sundaytimes DOT lk/150215/business-times/sri-lankas-revenue-collection-slows-down-impacting-100-day-programme-135955 DOT html

    The Inland Revenue Department (IRD)’s continuing failure to collect taxes due to the lethargic attitude of officials and poor administration at the helm could hinder the 100 day relief programme of the new government and hurt economic growth, Treasury officials warned.

    According to the IRD’s monthly revenue performance report up to February 10, revenue collection was Rs.2, 928 million, falling short of the Rs. 5 billion target by Rs. 2, 803 million.

    The Department should double the revenue collection efforts to meet the target and the present Director General should implement pragmatic programme towards this end, they said.

    But the department officials are fighting for promotions after the change of the government and some of them have staged a protest demonstration recently against the top administration.

    This situation is aggravating day by day and this was brought to the attention of the new Finance Minister Ravi Karunanayake as well, they disclosed.

    The government will have to find an additional sum of Rs. 17 billion to meet the salary hike of public sector employees and pensioners, they said, adding that the reduction of tariffs on essential items would compel the Government to further cut down state expenditure.

    This combination of reduced revenue and increased expenditure will inevitably result in an increase in the budget deficit and additional borrowing, they pointed out.

    A senior Treasury official said the failure to increase tax revenue will cause pressure to cut capital spending “with a possible adverse impact on growth”.

  25. Ananda-USA Says:

    Maintaining UNSUSTAINABLE short-term CONSUMPTION SPENDING while GUTTING long-tern INVESTMENTS in National INFRASTRUCTURE & DEVELOPMENT will HALT Sri Lanka’s ECONOMIC GROWTH. It will transform our Motherland into a Nation of Do-Nothing, Make-Nothing, Eat-Everything Lotus Eaters!

    Aiyooooo Sirisenaaaa …. What are YOU DOING to our Motherland?

    …………….
    Budget reflects ideological clashes within government

    By Chandeepa Wettasinghe
    DailyMirror.lk

    Top economists in the country slammed the new regime’s interim budget for political indecisiveness and failing to rectify past economic missteps, during a post-budget seminar organized by the Sri Lanka Economic Association (SLEA) and the University of Colombo recently.

    “Does this reveal the political agenda of the new government? No,” University of Peradeniya Senior Lecturer Dr. Sumanasiri Liyanage said curtly.The interim budget is widely considered a welfare-oriented fulfillment of election promises, despite the traditionally open market oriented United National Party, comprising majority of the coalition government.

    However, some may come up with an argument saying that the UNP has matured politically, attempting to create a political economy suitable for Sri Lanka.

    Recently, Policy Planning and Economic Affairs Deputy Minister Dr. Harsha de Silva said that the new regime is following the German social market economy model, combining markets with minimum government regulation while enhancing social insurance.However, Former Central Bank Director and academic Prof. S. S. Colombage and University of Colombo Senior Lecturer Prof. Sirimal Abeyratne agreed with Dr. Liyanage.

    However, cracks were shown within the UNP itself, as Dr. de Silva had subtly expressed certain reservations to certain policies enacted by Finance Minister Ravi Karunanayake through the budget.Meanwhile, the economists were also highly critical of the new policies threatening the country’s macroeconomic factors.

    “The government is mixing up multiple objectives. They shouldn’t endanger the long term budget for short term gain,” Prof. Abeyratne said.
    While SLEA President Prof. A.D.V. de S. Indraratne held to the belief that the interim budget was better than the November 2014 budget, all other panelists said that both of them were extremely bad; sacrificing long term growth for short term political capital.Karunanayake had previously stated that the interim budget would have far reaching ramifications, to be felt for years to come. However, it is doubtful whether he was referring to such negative impacts.

    Dr. Liyanage stressed that the policies were unsustainable, and that the country would face austerity following the 100-day programme.Prof. Colombage quoted Singapore’s Former Prime Minister Lee Kuan Yew.“Sri Lankan budgets are an auction of non-existing resources.”

    They were especially displeased with the selective intervention tactics of the regime in providing relief to the lower spectrum while taxing the super rich.
    “Targeting to bring down commodities is selective. And the super gain tax is bad too; we have a legal framework which should have been used,” Prof. Abeyratne noted.He added that this severely harms investments and business, specially from foreign sources, and further added that actions which seem politically correct today may not be so when their ramifications are felt.

    Meanwhile Prof. Indraratne expressed worry over the spending reduction on public investment.“I was perturbed. We have to take this into serious consideration, because public investment is one of the determinants of growth,” he said.Karunanayake had previously stated that the reduction in investment monetarily does not reflect a reduction in infrastructure development physically, as the spending reduction is offset by eliminating corruption.

    The economists expressed worry over the recurrent expenditure overwhelming government revenue, and that this budget had managed to reduce the budget deficit only through the reduction of public spending and the one off-taxes which the regime promised would not be repeated.

    This would mean that such expenditure would have to be financed by further borrowings once the one-off revenues are exhausted.Prof. Indraratne said he had hoped for a fall in public debt during the interim budget, but hoped it would happen during the next one.As a solution, Dr. Liyanage said that tax reforms should have been enacted, increasing income tax.“Over 80 percent of our taxes are indirect. It is necessary to increase direct taxes. And there is no correlation between increasing direct taxes and the reduction of growth,” he said.

    This conforms to the views previously expressed by Central Bank Governor Arjuna Mahendran, who said that reducing the over 20 different tax schemes, most of which are waived through subsidies, to a simple few could increase transparency and increase tax collection by two to threefold.

  26. Ananda-USA Says:

    Yamapalana Sudiya!

    Lankawata Harima Deyak Siduwuna,
    Seemawak Nathuwa Pathuruna.
    Raja Wennata Sithapu Landa,
    Sudiya Nisa Moda Wuna,
    Biwwa Neda Yahapalanaya?

    Biwwa Neda Yahapalanaya?
    Gilla Neda Yahapalanaya?
    Aney Magey Sirisena Paney,
    Kiyannako Attha Aney,
    Apita Pewwa Neda Yamapalanaya?
    Apita Pewwa Neda Yamapalanayaaa ….?

  27. Ananda-USA Says:

    Ado Yakko “Facebook” Lorenzo” Piously Proclaims ….

    “A TYPICAL TAMIL!

    “Untruthfulness comes as naturally to a Tamil as mother’s milk “. – William Sabonadiere, 1866”

    BULLSHIT! This is a Racist Comment against Tamils with which Ado Yakko “Facebook” Lorenzo hopes to REVIVE his TATTERED credentials as a PATRIOT! Tamils are NO LESS or NO MORE untruthful than other people! This is plainly ANOTHER EXAMPLE of his DEVIOUS EXTREMIST STRATEGIES … to curry favor with LankaWeb readers thinking they are as RACIST and AS DEVIOUS as HE IS!

    MORE HYPOCRISY from the failed “War-Games” DISINFORMATION EXPERT! More EXTREME PRONOUNCEMENTS to BURROW DEEP INTO THE PATRIOTIC WOODWORK!

    BEGONE … BUGGER OFF …. without DISCREDITING LankaWeb with your EELAMIST EXTREMISM!

Leave a Reply

You must be logged in to post a comment.

 

 


Copyright © 2018 LankaWeb.com. All Rights Reserved. Powered by Wordpress