Trade Minister: 86 percent of govt. revenue spent on public servants

Trade Minister Dr. Bandula Gunawardane yesterday said that 86 percent of government tax revenue was spent on paying salaries of the public servants and there was no other means to increase their salaries without increasing taxes on the public, selling public assets or obtaining loans.

Addressing the media at the Government Information Department auditorium the Minister said the total government tax revenue last year had been Rs. 1,216 billion, while the total amount spent on government salaries and pension payments was Rs 1,052 billion. After paying the salaries and pensions of public sector workers, the remainder of the total tax revenue was only 164 billion rupees, the Minister said.

Minister Gunawardane said the pandemic had badly hit the developed, middle income and poor countries across the world alike and over four million people had died. While hunger, malnutrition and poverty had increased, it was not an easy task to maintain public finance management for any government.