Brewing crisis of the tax state: Stimulus for prosperity or austerity for sustainability?

Two events hit the local and global media separately last week.

The local media event was the release of the Midyear Fiscal Position Report 2012 by the Ministry of Finance and Planning in terms of the requirements of the Fiscal Management (Responsibility) Act of 2003 (available at: http://www.treasury.gov.lk/depts/fpd/reports/fmr/2012/midyearreport-2012.pdf).