“Powerful economies flourish by deploying citizen centric fiscal policies that are both transparent and have clear accountability”
Thank you for inviting me for today’s program firstly i will explain how my journey has taken place in creating strategies to develop sri lanka in 2005 i was part of the strategic enterprise management agency sema for 10 years and i was able to get an understanding how various ministries function alone with the experience gained at sema and the time i have invested
Since february 2005 in studying more than 70 countries and their strategies in increasing gdp per capita published my policy book in 2019 on economic growth strategies sri lanka 2030 a developed nation let’s listen to the audio book for the recommended action items chapter 2 ministry of finance and planning nation rich in wealth powerful economies flourish by
Deploying citizen-centric fiscal policies that are both transparent and have clear accountability dhammika pereira goals create a better sri lanka through finance sound fiscal management to ensure that the revenue to support investments in sri lanka’s social and economic priorities is raised and spent in a fair responsible and efficient way precision poverty
Reduction allocation of modern technologies to identify poor households through 50 indicators evaluating key factors that contribute to poverty in these households and allocate investments to reduce poverty levels to that of a developed nation development of human capital prioritize upgrading of primary secondary and tertiary education and ensure enrollment of
50 of total 360 000 students per annum to public and private universities rebrand and upgrade the quality of technical vocational and educational training tvet and ensure enrollment of 40 of total 360 000 students per annum to tvet education thereby only 10 percent of total students per annum fall into the unskilled labor market sound social policy framework to
Support the government’s efforts to promote equal opportunities for all citizens across the country and to meet the government’s priorities for promoting jobs transforming the agricultural sector inclusive of increasing agricultural productivity of farmers farmers household income equitable consumption of a safe affordable nutritious diet year round and women’s
Empowerment in agriculture and economic growth inclusive and sustainable economic growth to create the conditions necessary for a strong long-term and clean economic growth thereby increasing the standard of living and well-being of sri lankans sri lankan population growth per annum is an average of 190 000 therefore in order to maintain the current economy it
Is necessary to create an additional 62 400 jobs per annum source jobless growth world bank 2018 oakland’s law states that for every one percent decrease in the unemployment rate gross domestic product increases by 3 percent establish and implement a district-wise job generation plan to decrease unemployment this is to be monitored monthly and government to
Aid private sector investments the laffer curve illustrates a relationship between rates of taxation and the resulting levels of government revenue it illustrates the concept of taxable income elasticity that is taxable income changes in response to changes in the rate of taxation a key reason for the lack of investments into the country at present is due to
Incorrect tax rates as our current rates tax investors higher than our competitors thereby discouraging investments into the country therefore it is required to maintain a tax rate at the revenue maximizing point in order to attract the highest possible investments into the country changing the tax and customs duty policies to increase greenfield and brownfield
Local investments in foreign direct investments is necessary for economic growth increased district-wise job generation and goods and service exports action plan during the past 14 years direct government tax revenue on a cumulative basis was 2 481 billion rupees whereas 2405 billion rupees was incurred as an additional payment due to rupee depreciation to make
Foreign borrowings increase to 5959 billion rupees by last year therefore to stop the rupee depreciating beyond 2 percent to 3 percent it is essential to bring in investments especially for indirect investments and enhance exports regardless of the direct tax revenue policies relating to the department of inland revenue total government revenue in 2018 was 1919
Billion rupees introduce an artificial intelligence ai based monitoring system to both customs and the department of inland revenue for the purpose of monitoring evasions after introducing ibm watson in switzerland customs revenue increased by 10 after which government revenue will be increased by 15 generating an additional 287 billion rupees one maintain
The current rate of corporate tax for the following industries a financial services accept insurance and pension funding b wholesale trade except of motor vehicle and motorcycles c manufacture of tobacco products d telecommunication e gambling and betting activities whilst reducing the current rate of dividend tax and capital gain tax to 0 which will help
In additional job generation 2. reduce the current rate of corporate tax to zero percent and provide a guarantee for new ventures through an agreement with the boi at the reduced rate for the next 25 years for industries a education b information service activities any type of bpo kpo provision of infrastructure for hosting data processing services and related
Activities web portals news syndicates and news agency activities furnishing news pictures and features to the media computer-based telephone information services information search services on a contract or fee basis and news clipping services press clipping services and other digital services c human health activities d air transport e manufacturer of motor
Vehicles trailers and semi-trailers f waste collection treatment and disposal activities materials recovery g water collection treatment and supply h sewerage i manufacture of other transport equipment j fishing and aquaculture k remediation activities and other waste management services three reduce the current rate of corporate tax to 12 for existing
Ventures not mentioned in points one and two four reduce the current rate of corporate tax to twelve percent for new ventures not mentioned in points one and two and provide a guarantee for the reduced rate for the next 25 years for all sectors in the western province and for the other eight provinces to be granted a discount of 80 percent thereby charging an
Effective rate of 2.4 percent which will help in additional rural district-wise job generation 5. pay tax of 12 will only be charged starting from a monthly income bracket of 500 000 rupees policies relating to sri lanka customs total government revenue in 2018 was 1919 billion rupees introduce an artificial intelligence ai based monitoring system to both customs
And the department of inland revenue for the purpose of monitoring evasions after introducing ibm watson in switzerland customs revenue increased by 10 percent after which government revenue will be increased by 15 generating an additional 287 billion rupees six out of the prevailing 7162 hs codes in customs 90 of the customs revenue is generated through 500
Hs codes six digit the tax structure of these 500 hs codes that generate 90 percent of the customs revenue is to be restructured benchmarking that of malaysia thailand and india that will help local industries and create additional jobs as a result customs revenue can be increased by 10 percent government capital investments 7. government capital investments
Also known as the public investments program pip where the benefits span many generations of sri lankans paying for them through some borrowing is fairer and more efficient borrowings will be made in a responsible and sustainable manner to help instill financial discipline and distribute the share of funding more equitably across current and future generations
Government recurrent spending eight recurrent spending needs in areas such as precision poverty reduction primary secondary university technical and vocational tvet education is to be recognized as necessary expenditures 9. currently sri lanka takes the easier route by funding some of these recurrent expenditures through borrowings this is not ideal in the long
Run as such borrowings shift the burden of paying for today’s needs onto future generations a fairer and more robust approach is to meet recurrent spending with recurrent revenue hence we must continually review our tax system to ensure its resilience future policy and strategy planning for sri lanka 10 the ministry of finance and planning should be responsible
For future policies and strategic planning for sri lanka 11 any policy proposed in the budget to have an economic analysis that the ministry of finance can use to validate proposed policies 12. implement a management information system mis to track the progress of budget promises 13. asset management systems to be implemented to monitor and ensure maximum
Utilization of government assets and resources thank you for listening if you want to access the fully audio book on action item listed for various sectors such as education agriculture tourism finance and planning please visit www.audio.com or the website damica pereira dot lk thank you
Transcribed from video
02.Ministry of Finance & Planning – SRI LANKA 2030 DEVELOPED NATION by Dhammika Perera By Dhammika Perera
