Thursday Nov 21, 2024
Thursday Nov 21, 2024
Wednesday, 23 December 2020 00:00 - - {{hitsCtrl.values.hits}}
By Nisthar Cassim
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| Treasury Secretary S.R. Attygalle
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The Finance Ministry will establish a Budget Implementation Unit to coordinate Budget 2021 to ensure it meets the Government’s aspirations of realigning the economy to tap Sri Lanka’s growth potential fully, increase revenues and promote debt sustainability.
Treasury Secretary S.R. Attygalle told Daily FT in an exclusive interview that the implementation unit would address concerns over implementation and emphasised that all Budget proposals would be implemented with at least eight largely tax- and loan-oriented proposals already rolled out within days of the key policy document getting Parliamentary approval.
“A Budget Implementation Unit will be established to coordinate the execution of Budget 2021. I have already identified the officers to be assigned and they have already started work. Departments have been structured to also meet the new demands,” he said.
Not stopping there, the Finance Ministry Secretary said the Procurement Division under the Ministry would, in addition to the facilitation role, also undertake analytical reviews of key procurements in the country. Attygalle said he had already requested the division to relook at procurement guidelines and ensure they are updated to meet current requirements.
He also pledged that e-procurement would be rolled out at the earliest.
“The Treasury has always had a good talent pool and so when assigning officers to departments and even in some instances assigning them work, a skills matching as much as possible was done. Young officers have been promoted. I expect the other agencies to also do their bit. I am confident that they will do so. We will coordinate with them to ensure the successful implementation of the Budget.”
He insisted that given Sri Lanka’s low growth numbers over the last few years it was essential that Budget 2021 contain proposals that could engineer a serious realignment of the economy. This included promoting strong sectors while also funnelling funds into infrastructure to connect the country internally as well as with global value chains.
“That’s why the groundwork for the Budget 2021 began in 2019 itself; having identified the issues correctly, the Government lost no time in stimulating growth by introducing tax reforms in December 2019 itself which included the slashing of VAT to 8% from 15% to removal of taxes such as Withholding Taxes and PAYE which were not final taxes. The resulting tax regime is therefore one of low and simple taxes.
“The Budget was crafted to stimulate growth. If you look at the way resources were allocated, the capital budget itself is Rs. 1,000 billion or about 6.1% of GDP. The Budget allocations have been provided with outcomes in mind rather than outputs. The Government has identified connectivity, digitalisation and upholding of basic human needs to be the desired outcomes of the Budget.”
