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Smart Move – Budget Update 2

The Marxist party was planning to use the privatisation programme as a strategic weapon to frustrate the government quote s reform agenda, a top government source told Lanka Business Online today.

rnrnldblquote The privatisation programme is going ahead as planned, with Sri Lanka Insurance Corporation and state utilities in the pipeline. We just did not want provide the JVP with a fresh stock of ammunition to frustrate the peace effort dblquote , he said.

rnrnThe government today unveiled a lquote liberate budget quote to achieve a deficit of 8.5 percent of GDP and a growth rate of 5 percent.

rnUnveiling the 2002 budget, Finance Minister K N Choksy announced a series of measures to rationalise the tax, custom and tariff systems.

rnChoksy scrapped indirect taxes such as the 12.5 percent Goods and Services Tax and 6.5 percent National Defence Levy, and replaced it with a new Value-Added Tax.
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VAT would now stand at 20 percent.rn

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