Number Game

CEAT Kelani Holdings Managing Director Ravi Dadlani (right) and Lanka Ashok Leyland CEO Umesh Gautham exchange the OEM agreement

Also referred to as the Fiscal Responsibility Act, a finance minister is also bound to make mid/final year budget and fiscal position report.rn

rnWhile the new law prevents the misuse of public funds, it also exposes the impact of vote catching election proposals on the exchequer.rn

rnElection manifestos of major political parties will go before the Central Bank to gauge the long-term impact on the public purse.rn

rnPolitical parties have always dangled vote-buying gimmicks like pension and salary increments, subsidies for farmers and unemployed people and so on. Such future election gundus will be difficult to commit under this law.rn

rnWithin three weeks of elections being announced, the Central Bank is required to investigate and comment on all government/political parties spending plans within one week.rn

rnA pre-election budgetry position report will contain a statement of risks, quantify things that have material effect on the fiscal numbers. It will estimated revenues, expenditure, borrowings

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