Bandula sings hossanas about Ranil led govt. of early 2000s

By Rathindra Kuruwita

The 225 MPs feel the pain of increased taxes, Cabinet Spokesman, Minister Bandula Gunawardana told the post-Cabinet press conference yesterday.

“Yes, the taxes are high and the 225 MPs also feel the pain just like everyone else. They too are paying taxes. Even our fuel allowance is taxed. The President and the Finance Ministry are trying their best to give concessions,” he said.

Minister Gunawardana said that the government had been compelled to reach an agreement with the IMF on debt restructuring.

“Otherwise, we will not be able to operate for a week as a country. The IMF insisted that we increase our revenue and reduce expenditure. They want us to show real commitment because in the past we have not taken steps to increase taxes and reduce expenditure,” he said.

In 2001, when the economy saw negative growth following the LTTE attack on Katunayaka, the Ranil Wickremesinghe government came up with the Fiscal Management Responsibility Bill of 2003.

“I was a minister of that government. With this bill we promised to reduce the budget gap to less than five percent of the GDP, reduce all debt to 65 percent of the GDP by 2013 and to maintain it and to keep foreign debt under 4.5 percent. Unfortunately, the Wickremesinghe government was toppled, and the next governments changed the bill three times. The Finance ministry and Central Bank officials told the governments that were elected thereafter, the country could not function within these limits. However, if we had stuck to our guns, we wouldn’t be in this mess now,” he said.