Govt. borrowings to reach Rs. 516.1 Bn

* Foreign Financing Rs. 235.5 Bn, Domestic 280.6 Bn
* Revenue to expand to Rs. 1,437.4 Bn,  expenditure expand to Rs. 1,985.6 Bn

November 21, 2013, 7:23 pm 

According to the Budget 2014 presented to parliament yesterday the government expects total deficit financing at Rs. 516.1 billion next year. Foreign financing is expected to reach Rs. 235.5 billion, while domestic financing would be Rs. 280.6 billion.

The foreign gross-borrowings according to 2014 budget estimates would reach Rs. 331.5 billion next year, up from Rs 247.1 billion this year. The government would borrow 234 billion from foreign funds and 97.5 billion foreign commercials.

Domestic non-banking borrowings is expected to reduce to Rs. 280.6 billion from Rs. 359.3 billion this year, bank borrowings by the government would reduce to Rs. 100 billion from 201.4 billion. Foreign investment in T-Bills and T-Bonds also is expected to reduce to Rs. 51.3 billion from 53.2 billion.

The total revenue of the government is expected to increase to 1,437.4 billion from 1,183.1 billion this year, while grants would reach Rs. 32 billion, up from Rs. 20 billion.

Tax revenue is expected to be Rs. 1,274.6 billion in 2014, up from Rs. 1052.2 billion this year, non tax revenue to reach Rs. 32 billion from 20 billion.

The total expenditure, according to the Budget 2014 would increase to Rs. 1,985.6 billion from Rs. 1712.4 billion this year.

Revenue, after several years of deficits is expected to have Rs. 109.2 billion surplus next year.

The budget deficit is expected to contact to 5.2 percent from 5.8 percent this year at Rs. 516.1 billion. -MA

Tax Break For Louis Vitton Products Must Be For Benefit Of Rajapaksa Family Members: Harsha

November 22, 2013 

UNP Economic Affairs Spokesman Harsha De Silva yesterday issued a scathing criticism of the Government’s 2014 budget, saying it catered to Georgio Armani wearing super rich classes of people in the country while placing the entire tax burden on the poor man.

Dr Harsha de Silva MP

Reacting to yesterday’s Budget presented by the President in Parliament, De Silva said that the Government had inexplicably decided to remove import duties on designer brands like Louis Vitton, Georgio Armani and Salvadore Ferragano.

“A member of the royal family recently told a local newspaper that he only wears Louis Vitton belts and shoes – each of these cost USD 600 or USD 1200 at minimum – the tax waiver must be for their benefit,” the UNP MP charged in a reference to President Rajapaksa’s youngest son, Rohitha Rajapaksa’s pronouncements inan interview with the Daily Mirror a few months ago.

The Government had increased taxes on salt, sugar, dhal and the salmon tin, directly affecting the common man, de Silva said.

“Who asked the Government to reduce taxes on designer brands? How many of us wear Ferragano ties and Hugo Boss perfume? Why would we care if these products are taxed?” he asked.

De Silva said that the people had been begging for relief to be able to afford their food items, but the Government had effectively slapped them in the face.

“This is a budget for casino kings, it is completely anti-people,” he explained.

The UNP MP said that the Government’s economic policy was classic crony capitalism.