Tax and non-tax state revenue flows into the thrift pot of the budget while effective costs are gained outside the pot, said Sri Lanka Central Bank’s former Deputy Governor W.A. Wijewardene, while adding that a huge amount of funds was leaking from this pot.
The Finance Minister was either unaware of this leak or was aware and is ignoring it, said the former Deputy Governor while speaking at a post-budget seminar.
While adding further, former Deputy Governor W.A. Wijewardene said, “According to my calculations, tax payers bear a cost of Rs. 06 million per month to maintain a Minister. The Ministers have to be paid a good salary. But whatever thus given has to be declared to the public.
“The Treasury having taken on the responsibility of salvaging bankrupt financial institutions is an extremely unfavourable situation that has emerged currently. The best example that could be cited for this is the Golden Key company. Rs. 11 billion is being paid to Golden Key. This means, we could continue maintaining five universities like Sri Jayewardenepura from this amount paid to Golden Key. What right does the inance Minister have to take my tax money and pay it to Golden Key? I don’t think he has such a right.
“Sri Lanka’s payment system is created by the Monetary Board. Through this budget, the Finance Minister says he is setting up a system while consolidating all tax-paying institutions and that all payments by the state and private sectors should be through this particular institution. Hence, an unimaginable threat looms before Sri Lanka’s future monetary system. Banks have to be controlled by the Central Bank. The Finance Minister decides on the capital of the banks and on how the banks should lend. The Finance Minister says loans below Rs. 100,000 need not be recorded. I don’t know why he has said this. This is not a duty of the Finance Minister. This responsibility lies with the Central Bank’s Monetary Board. These are functions of the Monetary Board. Interfering into these does not suit a Finance Minister. The Monetary Board has been created for the benefit of the people of the country and not to work on behalf of politicians.”