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| Monday, 11 October 2004 |
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CNCI Budget proposals Continued from last week v.) In the Tender procedure to supply goods and services to the state sector organisations, the private sector suppliers should be made compulsorily required to submit their Tax clearance proof to qualify for the Tender. Higher the value of supply this requirement should be strictly enforced. vi.) Introduce and publicise a Reward Scheme for information on Tax dodgers. vii.) Professional accounting/auditing companies should be advised to refrain from certifying the annual accounts of companies, which do not have Tax clearances. viii.) Accountancy/Audit firms must be charged with the responsibility of issuing certificates of correct Tax assessment and payments by their clients. Department of Inland Revenue could monitor this by sample checking of client's files. ix.) The Inland Revenue Department should be strengthened with adequate manpower and modern technology to track Tax defaulters and bring them into the Tax net. x.) Revise all fines for breaking laws of the land in line with the cost of enforcing such laws. Rationalisation of Government Expenditure Continuation of Ceasefire agreement and lasting peace in the country would certainly curtail the Government's expenditure mainly by way of saving of expenditure on Defence. Whilst it is important to satisfy the work force by offering salary/wages increases and removing salary anomalies to avoid work stoppages, it is our view that ad hoc salary increases should be avoided. Following are some of the proposals the CNCI wish to make in the rationalisation of government expenditure. i.) Subsidies on consumer items should be clearly targeted rather than allowing it across the board. Items on which the subsidies cannot be removed should be frozen at current levels. The adverse effects on the low-income groups on whose benefit the subsidies are made should be cushioned by increasing the "Samurdhi" payments. ii.) Rationalise the Government Institutions/Departments the functions of which are either duplicated or could be carried out by other Departments/Authorities and close down any redundant Institutions/Departments. Eg. Transfer of functions from the Central to the Provincial Councils along with the related staff for greater efficiency, convenience of the public and avoid duplication of work. iii.) Legislation be passed on limit the expenditure on state institutions to a percentage of the Total National Revenue. iv.) If privatisation is not an option for the Government, alternatively it is suggested that the management of the state organisations be leased or contracted to the private sector on a long-term lease. This would eliminate the drain of financial resources of state, by not having to offset the losses. v.) It is proposed that productivity improvement of all state sector organisations be introduced. Funds allocated for staff remuneration, premises upkeep, travelling, transport etc. should be progressively curtailed by a certain percentage every year and the management of the organisation be called upon to meet such reductions by productivity improvements to provide the same level of quality service they are meant to provide. vi.) Explore the possibility of encouraging the mixing petroleum with Alcohol liberally produced in the country thereby reducing the consumption of pure petroleum, which would lead to reduction in oil imports. It is said that up to 10% of alcohol could be mixed with the Petroleum. The method would also lower the harmful emissions. Understandably it is being practised in countries like India, Sweden and Brazil. vii.) It is imperative that the Transport system in a country should be efficient in order for the economy to grow. Long delays experienced by the workforce and industry due to poor road network, lack of alternate ring roads, flyovers, etc. especially in the main cities and suburbs resulted in colossal loss of man-hours and extra fuel consumption due to traffic congestions. As the country does not have the necessary financial resources presently for such development, it is therefore proposed that the restriction on import of vehicles be reintroduced. System of auctioning the permits as practised in Singapore when one needs to replace a vehicle may be introduce in Sri Lanka. Same system could apply to Diesel vehicles too. 4. Infrastructure Development Needs As mentioned basic infrastructure needs such as improved Road network and low cost uninterrupted power supply at competitive cost are two main factors, which retards the country's economic growth. 4.1 Power Generation Economic progress of the country over the years has been adversely affected due to unreliable and high cost power resources. The crisis in the generation of much needed electrical power has been and is at present the biggest crisis only second to the problem of peace the country faces today. The chamber is much concerned about the situation and demand urgent action. To be continued next week |
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