By Padmini Matarage
A cash strapped government is planning to issue Treasury Bills (TBs) totaling Rs.150 billion to cover public expenditure.
“Local banks will not purchase the entire stock of TBs, therefore the Central Bank will purchase the majority of the TB stock. Otherwise the Central Bank will obviously resort to printing money. As a result inflation will skyrocket”, JVP MP Sunil Handunnetti told LAKBIMAnEWS.
In addition, Handunnetti said that the government had decided to increase the nation building tax, which is currently at 1%, to 3% from May 1st and that this is expected to rake in an additional income of Rs.17, 000 million for the government. He said that that this tax increase is to be introduced after the Western provincial council election is significant.
The government introduced five urgent monetary acts in parliament on March 23 and passed the 1% nation building tax to take effect from January 1st. However, according to the 2009 No.9 Nation Building Tax Amendment the 1% tax will end on April 30th and it will be increased to 3% from May 1st. The government has already increased12 taxes levied for 2009.
He charged that the government has not taken any steps to provide any of the benefits promised in the Nation Building Tax scheme to the public and members of the armed forces.
He said that the perfect example of mismanagement of the levy is the government giving over Rs.3.8 million to the family of a deceased Southern provincial councilor when it was not prepared to provide even Rs.100,000 for the family of a dead soldier.
Lakbima
A cash strapped government is planning to issue Treasury Bills (TBs) totaling Rs.150 billion to cover public expenditure.
“Local banks will not purchase the entire stock of TBs, therefore the Central Bank will purchase the majority of the TB stock. Otherwise the Central Bank will obviously resort to printing money. As a result inflation will skyrocket”, JVP MP Sunil Handunnetti told LAKBIMAnEWS.
In addition, Handunnetti said that the government had decided to increase the nation building tax, which is currently at 1%, to 3% from May 1st and that this is expected to rake in an additional income of Rs.17, 000 million for the government. He said that that this tax increase is to be introduced after the Western provincial council election is significant.
The government introduced five urgent monetary acts in parliament on March 23 and passed the 1% nation building tax to take effect from January 1st. However, according to the 2009 No.9 Nation Building Tax Amendment the 1% tax will end on April 30th and it will be increased to 3% from May 1st. The government has already increased12 taxes levied for 2009.
He charged that the government has not taken any steps to provide any of the benefits promised in the Nation Building Tax scheme to the public and members of the armed forces.
He said that the perfect example of mismanagement of the levy is the government giving over Rs.3.8 million to the family of a deceased Southern provincial councilor when it was not prepared to provide even Rs.100,000 for the family of a dead soldier.
Lakbima
