“Budget adds burden on public” – JVP

By Chamodi Gunawardana

The Janatha Vimukthi Peramuna (JVP) yesterday claimed the Government expect to run the economy by adding burdens of taxation and loans on the public.

Revealing its opinions over the recent budget, JVP Propaganda Secretary Vijitha Herath charged that the Government doesn’t have a proper plan to reduce the burden of taxation by increasing production.

“The Government has estimated to spend Rs. 3000 million to reduce the prices of essential goods including gas and milk powder. It expects to recollect that amount by raising tax revenue up to Rs. 1584 billion. That’s why the Government proposed to increase some taxes such as port and airport tax and taxes applicable for IDD calls,” he claimed.

“The Government has planned to have a gross income of Rs. 2047 billion by the end of the next year. The annual expenditure is estimated at Rs. 2787 billion. It will create a Rs. 740 billion budget deficit which is higher than last year’s deficit of Rs. 675 billion,” Herath added.

Commenting on the export drop which happened during the past regime’s tenure, he alleged, “the so-called good governance doesn’t different from the prior administration.”  

“The export revenue contributed 29% for the Gross Domestic Product (GDP) before 2004, but at the end of the Rajapaksa regime it dropped down to 14.9%. During last eight months the Good Governance export income has declined to $ 7147 million. It caused an expanding in the balance of trade by 5%,” Herath charged.

Criticising Government borrowings, he claimed that for an administration of eight months, the Government has taken Rs. 600 billion worth in loans on 6.85% high interest.

“The past Government borrowed Rs. 6783.2 billion from foreign markets in 2014. When the Yahapalana Government took over, the state the borrowings were in Rs. 7390.9 billion. The current economic policies have expanded the limit of borrowings without controlling it properly,” Herath alleged.