{"id":119350,"date":"2021-10-18T16:22:35","date_gmt":"2021-10-18T23:22:35","guid":{"rendered":"http:\/\/www.lankaweb.com\/news\/items\/?p=119350"},"modified":"2021-10-18T16:22:35","modified_gmt":"2021-10-18T23:22:35","slug":"the-task-of-the-eliminating-budget-deficit","status":"publish","type":"post","link":"https:\/\/www.lankaweb.com\/news\/items\/2021\/10\/18\/the-task-of-the-eliminating-budget-deficit\/","title":{"rendered":"THE TASK OF THE ELIMINATING BUDGET DEFICIT"},"content":{"rendered":"

BY EDWARD THEOPHILUS<\/strong><\/em><\/span><\/h2>\n\n\n

Mr.\nBasil Rajapksha, the Minister of Finance, stated that his intention is to\neliminate the budget gap or deficit in Sri Lanka. It is a good fiscal\nmotivation, and the task is difficult to achieve and it may be an art of\ndiscourse because the budget deficit of Sri Lanka cannot be quickly eliminated\nfrom the current environment. As people knows the budget deficit is a concept\nthat has a considerable history. When talks budget policies during wartime,\nA.C.Pigu advised that the cutting wages would be increased the wage fund and\nunemployment could reduce giving jobs spending saved money, despite the\nclassical views, Keynes stated the deficit budget would support to increase\nspending and effective demand and create more employment opportunities. The\ncovering budget gap or deficit would be crated inflation and how to control the\ninflation has not been advised by Keynsian supporters, but later Milton\nFriedman advised introducing an inflation tax. The view of Keynes has been\nimplemented in many countries and economists found that the idea of Keynes\nwould be suitable for when an economy has an excess capacity, but many countries\nopted for continuously deficit budgets and it has been a serious economic\nproblem in the 1980s and the World Bank advised managing balance budget or\nexcess budgets and many Western countries have been converted the fiscal system\nto balance the budget using the collected funds from privatised public\nenterprises.<\/p>\n\n\n\n

Mr.Basil\nRajapaksa, as the Minister of Finance has an excellent idea, how to eliminate\nthe deficit budget is a gigantic task because the budget policy of Sri Lanka\nhas not been targeted to balance revenue and expenditure. It has been a\nstructural problem in Sri Lanka\u2019s economy since the Korean war and the budget\npolicies of the country did not explain to people in simple language why Sri\nLanka needs eliminating the budget deficit. In addition, the corrupt practices\nof politicians and bureaucracy also contributed to increase the budget deficit\nin negative format.<\/p>\n\n\n\n

Why\ndoesn\u2019t Mr.Basil Rajapaksa begin a campaign to educate people about outcomes of\na balance budget. A balance budget would reduce the debt of the country and\neliminate many economic problems. The major problem is how to eliminate the\nnegative deficit. One option is to increase taxes in various sectors, the\nothers are reducing spending (especially expenditures for parliament and its\nmembers), increase job opportunities for poor people reducing their subsidies, stopping\nfree health and education for people who are in a reasonably higher level\nincome bracket.<\/p>\n\n\n\n

The\nbest option to eliminate budget deficit is reduction of expenditure and\nincrease revenue. In the 1980s, many western countries either reduced or\neliminated budget deficit by selling public enterprises and using the pays off\ndebts and budget gap.  <\/p>\n\n\n\n

Mr.Basil\nRajapaksa needs promoting these ideas among people and explaining possible\npositive impact on the elimination of the budget deficit. If it happens, the\nvalue of Sri Lanka rupee will be higher and the foreign reserves in increase US\n$20 billion.  <\/p>\n","protected":false},"excerpt":{"rendered":"

BY EDWARD THEOPHILUS Mr. Basil Rajapksha, the Minister of Finance, stated that his intention is to eliminate the budget gap or deficit in Sri Lanka. It is a good fiscal motivation, and the task is difficult to achieve and it may be an art of discourse because the budget deficit of Sri Lanka cannot be […]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"closed","sticky":true,"template":"","format":"standard","meta":{"footnotes":""},"categories":[124],"tags":[],"class_list":["post-119350","post","type-post","status-publish","format-standard","hentry","category-edward-theophilus"],"_links":{"self":[{"href":"https:\/\/www.lankaweb.com\/news\/items\/wp-json\/wp\/v2\/posts\/119350","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.lankaweb.com\/news\/items\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.lankaweb.com\/news\/items\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.lankaweb.com\/news\/items\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.lankaweb.com\/news\/items\/wp-json\/wp\/v2\/comments?post=119350"}],"version-history":[{"count":0,"href":"https:\/\/www.lankaweb.com\/news\/items\/wp-json\/wp\/v2\/posts\/119350\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.lankaweb.com\/news\/items\/wp-json\/wp\/v2\/media?parent=119350"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.lankaweb.com\/news\/items\/wp-json\/wp\/v2\/categories?post=119350"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.lankaweb.com\/news\/items\/wp-json\/wp\/v2\/tags?post=119350"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}