Sri Lanka’s budget 2016 will make life easy for all: Ravi K

Nov 05, 2015 (LBO) – Sri Lanka’s Finance Minister Ravi Karunanayake has said that the upcoming budget 2016 will make ordinary people’s life easy, especially the fixed wage earners.

But 60 percent of the affluent class are not paying taxes. Accordingly, the economy needs to be properly structured, reformed and strengthened, Karunanayake said. The Budget 2016 would be one exercise, he was quoted as saying in a statement.

The government has no intention to put burden on the wage earners but In terms of taxation, the rich who evade will be compelled to pay taxes whilst those who are compliant will not be burdened.

The statement says 65 percent of the annual revenue is swallowed by the recurrent expenditure of the public sector salaries (Rs. 600 billion) and pension cost of 170 billion rupees.

“If you analyse the budget cost in a different way, out of the annual revenue of 1400 billion rupees, 1300 billion rupees (93%) has to be incurred for debt servicing,” the statement said.

Karunanayake has said that the government also plans to link the subsidies with employment.

Sri Lanka spends about 220 billion rupees annually on subsidies alone.

“According to a survey those depend on subsidy have become lazy and the government intends to transform them in to productive work force of the country.” the statement said.

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sacre blieu
sacre blieu
6 years ago

Financial accountability and correct economic value obtained is of prime importance. Even in the private sector a big amount of financial debt issues has resulted in a worrying scenario as a good portion of these funds have found its way for the personal benefit of the top management and is a violation of the principal of trust, Even the investors, government and private, could be receiving strange incentives for directing the funds towards these fictitious investments, and should be investigated and penalised.

Oshan Duminda Herath
Oshan Duminda Herath
6 years ago

If its going to be another tax hike to Hybrids, That would be the worst ever decision to make. Reduction of taxes on indian vehicles..Maximum damage to sri lankan economy. What i would say is if Ravi wants to sri lankan economy to grow, reduce the tax on small Hybrids such as Aqua, Fit.. Increase the Tax to its max for top luxury vehicles. That would reduce the gap between rich and poor increasing the lifestyle of everyone while increasing te productivity of the country which the most essential thing to move the country towards development.

Nirosh
Nirosh
6 years ago

Then the rich will decide to leave Sri Lanka and live elsewhere… its already happening

wichinta
wichinta
6 years ago

Migrant workers from srilanka is the major source of foreign exchange to the country.Why not bring in legislation to at least give one duty free vehicle permit for a slab of $ 50000 kept over a period of three years.These parameters could change according to the ministry rules. If you implement this, expatriates will remit more foreign exchage which is the need of the hour.Or is it too much to ask?

Gooseling
Gooseling
6 years ago

Looks good though I don’t understand the subsidies. The statistics say we have 96 Percent employment why is so much given in subsidies to unemployed families.

gundasa
gundasa
6 years ago

who trust you and your word