Nov 22, 2013 (LBO) – Sri Lanka has slapped a series of new taxes to raise revenue and worsen protectionism setting an ambitious state revenue targets for 2014 with more spending and borrowing outlined outside the budget. But state airlines continued to run losses, needing a 200 million US dollar bailout in 2014.
The Urban Development Authority is also set to borrow 750 million US dollars abroad to build houses for people, something people should do themselves.
The loan if floated will add another 01 percent of GDP to the overall public sector deficit, losing some of the gains made by improving cash flows of energy utilities.
State agencies such the UDA, Road Development Authority, defence hospitals and schools that spend and borrow outside the budget under government guarantees have fiscal data made it more difficult to compare budget deficits from one year to the next.
The was also some spending restraints in the budget which targets a 5.2 percent of gross domestic product deficit.
Amid masochistic calls by some economists to raise the tax t