03 Jul, 201306:13:09
July 03, 2013 (LBO) - Sri Lanka's finance ministry has revealed budget data conforming to a fiscal responsibility law for the first time in years, opposition legislator Harsha de Silva has said.
De Silva, an economist had pointed out that fiscal data had not been revealed as required by a fiscal responsibility law where estimates of revenues and expenditures and actual have to be provided. In the recent past only the cashflow estimates and actuals had been provided. De Silva had asked the state to submit the information to parliament. "Today marks the first time since assuming office in 2004 this government has provided information to the public on how its finances are performing in relation to the estimates provided in the budget," de Silva said in a statement Tuesday. "That there is a 20 percent reduction in the already low tax revenue from the estimate for the first four months of the year puts in perspective the stories floated by all and sundry in the government that there is almost miraculous development taking place across the country." Sri Lanka's tax revenues have been hit by slowing imports, tax slashed permits given to state workers and a rigged customs regime that is spawning tax arbitraging 'domestic production' or 'self sufficiency' businesses, critics say. Political powerful business sectors have also got value added tax exemptions. Recently value added taxes on gaming was also removed. De Silva had also charged that changes to the fiscal responsibility law to allow the central government to increase the limit on guarantees given to spending agencies and state enterprises to borrow direct, had increased 'fiscal irresponsibility', while showing lower deficit numbers.