Govt targets revenue growth of 20 pc of GDP

Poorer sections to benefit:

Sandasen Marasinghe in Jaffna

Human Resources Senior Minister and COPE chairman D E W Gunasekera yesterday said the government has initiated a programme to increase state revenue to 20 percent of the GDP as soon as possible to enable the poorer sections of society to enjoy the maximum benefits from government revenue, than at present, where it is 14.5 percent of the GDP.

The minister made this observation at the commencement of a two-day workshop for Divisional Secretaries, District Secretaries, public servants and personal staff of MPs in the Northern province, on how to assist the MPs deliver an effective service to the public.

Minister Gunasekera said the massive economic growth rate during the last six years which reached 8.3 percent last year and the doubled per capita income do not mirror government revenue, which as a percentage of the GDP is low.

He said this severely affects the low income earning sections of society.

The minister said revenue was 24 percent in 1977 but the same gradually reduced until it dropped to 13 percent in 2009.

He said the government revenue as a percentage of the GDP increased to 14.5 percent last year.

Gunasekera said ministry Secretaries act as the constitutional links between the Executive and the Legislature, which is the guardian of the public purse.

He said Ministry Secretaries, Divisional Secretaries, District Secretaries and other senior officials play a pivotal role in increasing the government revenue rate as a percentage of the GDP by utilising the money without wasting.

The minister as the COPE chairman said large sums of money during the last several years had been wasted without the knowledge of the Treasury, ministers or the Ministry Secretaries which cause a decline in government revenue by unimaginable rates. “Some institutions have failed to submit their annual reports for nearly 10 years,” the minister said.

He said President Mahinda Rajapaksa has issued instructions for measures to close all loopholes to prevent misappropriation and corruption and to increase government revenue. The workshop was organised by the Parliamentary Affairs Ministry.