UNDP sees gap between SL’s public finance and SDG goals

UNDP Resident Representative in Sri Lanka, Azusa Kubota observes that there is a gap between the country’s public finance and achievement of Sustainable Development Goals (SDGs).

She articulated the need to address the gap between public finance and the SDGs during a ceremony held in Colombo on Friday to launch the Sri Lanka Country Engagement Plan to implement practical actions for capacity building, technical assistance, increased awareness and institutional development to support the financing and achievement of the SDGs.

Kubota said: “At the time of polycrisis characterized by the COVID pandemic, the war in Ukraine, the energy shortage and the rising cost of living, the global community is confronted with a fast-growing fiscal gap. At the same time, we are seeing regression in the SDGs – none of the countries in the region are likely to reach SDGs by 2030. This situation calls for a more efficient generation of income and targeted and responsible use of resources for investments in areas that directly contribute to the SDG attainment. UNDP is committed to working with the Government of Sri Lanka and a wide range of stakeholders in the roll out of this Initiative to help the country mobilize its resources at scale and achieve the SDGs”.

A UNDP release said: The SDGs are a universal call to action to end poverty, protect the planet and ensure that all people enjoy peace and prosperity by 2030. But it requires fundamental changes to the way the economy and fiscal policies are organized. In order to offset challenging market conditions faced by developing countries and accelerate progress towards the SDGs, the recently launched SDG Stimulus Plan of the UN Secretary-General called for a fit for purpose sustainable financing approach. Therefore, stable and reliable state revenues are crucial for financing the SDGs.

The Inland Revenue Department, the Fiscal Policy Department, the Ministry of Finance and the UNDP in Sri Lanka have come together to better align taxation policies with the achievement of the SDGs in the country. Joining 25 countries globally, notably Maldives and Bhutan in the Asia Pacific region, the Sri Lanka Country Engagement Plan launched today, will provide the roadmap for the demand driven activities envisaged for the country. Funded by the Government of Finland and the Government of Norway, this initiative will be implemented for two years and anchored at the Inland Revenue Department and the Fiscal Policy Department.