Oct 16, 2009 (LBO) – A four-month mini budget is expected to be presented to parliament in November seeking approval for Sri Lanka’s government to spend 362 billion rupees collected from the people through taxes or borrowed.
Sri Lanka has a bloated public sector that does not pay income tax on their salaries and more that 100 ministers.
The ‘vote-on-account’ is a departure from the usual ‘election budgets’ which are unveiled before polls in Sri Lanka with unrealistic spending plans which eventually de-stabilizes the economy and creates high inflation when they are implemented.
The proposed total expenditure is slightly short of one-third of last year’s total spending without supplementary estimates.
Sri Lanka’s people have a peculiar notion that the ‘government can bear the burden and give relief’ to the ‘masses’ not realizing that higher taxes, high inflation or borrowing which will be a burden on yet unborn children is the result of state spending.
The mini-budget, or vote on account had provisions to spend 197.47 billion rupees as current expenditure and a very optimistic 158.98 billion rupees as capital expenditure and a further 6.22 billion rupees as ‘advance account’ activities.