UNP has come up with yet another budget disaster. Its 2017 budget taxes the productive and rewards freeloaders. This will spell doom for the economy which is already reeling under fiscal mismanagement, astronomical corruption and an unstainable foreign debt. Party politics is written all over the budget. UNP regime plans to give tax benefits to its voters and tax to death voters of other parties. It also highlights UNP leaders’ fears that its days are numbered. They want to shower its supporters with benefits before it is too late.
Taxing workers in the Middle East and cooperatives can only be termed inhuman. In addition to the immorality of these taxes, they will have a negative impact on two key industries that sustain foreign reserves and the agricultural sector. This will exacerbate the shrinking economy thanks to VAT increases. VAT payout has been increased by a staggering 36% (11% to 15% increase is a 36% increase on 11%) and more and more goods and services are now taxed. As people’s earnings don’t improve, they will have to reduce consumption. It will shrink the economy. Central Bank will have to cook books even more to show a rosier picture than reality.
With the continuing spat with China, the only source of infrastructure investments will be shut soon in the backdrop of collapsing foreign direct investments. Moragahakanda project is a project near and dear to the president. There is no way it can go ahead without Chinese assistance. It will also jeopardise generous Chinese grants to the tune of $1 billion to address kidney disease and related issues. This is another one of president’s projects. UNP will have some serious explaining to do for scuttling all projects of the president.
The biggest cancer of the UNP regime is its economic advisors. People have no faith in any of them. They have been living in foreign countries and only come to Sri Lanka during UNP regimes. It is foolish to think they have any regard whatsoever for the national economy. They are completely incompetent. However, they make sure their local associates and South Indian cartels are looked after. If things continue like this people will evade tax. Surely, their tax money is best kept in their pockets than in corrupt state coffers.