BUDGET 2024

WHEELS WITHIN WHEELS As we brace ourselves for yet another hike in the dreaded value added tax (VAT) in the new year, one wonders why the minority of voluntary taxpayers continue to have to subside the rest (led by tax evaders and rogue politicians) – and why corruption is being paid lip service when putting an end to the menace can wipe the dirty slate clean so that we don’t have to bear lopsided burdens, and the poor can be lifted out of the trap they’re in.

Corruption is the curse of our precious nation and the root cause of Sri Lanka’s perennial state of failure.

Yes, there are welfare measures galore in the president’s budget proposals but whether they’re sustainable and will reduce the growing number of fellow citizens who are reportedly living below the official poverty line is another matter altogether. The sceptics charge that the measures are targeted at the electorate since elections are due within the next 12 months.

And questions are being asked about whether the budget estimates are tenable, in view of the projected deficit of Rs. 2.8 trillion – that’s a whopping 20 percent increase on this year’s projection.

On the sunny side of the aisle so to say, the highlight of Budget 2024 is the long overdue net to catch the tax cheats – although whether they will continue to be protected by bribe-taking state officials is left to be seen.

So those who want to open a bank account, obtain approval for a building plan, register a vehicle or renew a motor license, or register a plot of (or title to) land will be asked to produce their tax file number in the future.

There’s also a welcome focus on education and higher education at long last, along with a budget allocation of 500 million rupees to launch a 10 year programme to improve ‘English literacy’ – which let it be said, is a dire need.

With business confidence free falling ahead of the budget presentation and likely to remain on low ground when reactions to the proposals are factored in next month, Sri Lanka’s so-called economic revival is perceptibly hanging on a thread.

– Editor-in-Chief