"Parliament was misled by past budgets showing unrealistic revenue" - Governor of the Central Bank !

The Governor of the Central Bank Dr. Nandalal Weerasinghe yesterday (May 24) passed a resolution in Parliament urging the people not to hide the true reality of the current difficult economic situation and to support policy decisions for long term economic stability without party affiliation despite narrow political interests. Made a request in the Committee on.

He pointed out that when a fuel price formula was introduced earlier, it could not be implemented in Akaria due to opposition, but it has to be introduced today.

He was speaking at a meeting chaired by Parliamentarian Anura Priyadarshana Yapa.

Anura Priyadarshana Yapa, Chairman of the Finance Committee, recommended that a full report be submitted to the Committee on the policy decisions to be taken to resolve the current economic crisis and to build a stable economy in the country.

Accordingly, it is expected to be presented to Parliament and given the necessary support, the Chairman of the Finance Committee said.

Explaining the current economic situation, the Governor of the Central Bank said that the World Bank assistance of US $ 600 million for the purchase of essential goods and services, including fuel and gas, for the foreseeable future.

He also pointed out that despite the supply of dollars, companies such as the Electricity Board, the Petroleum Corporation and Litro Gas do not have the rupee to buy dollars due to heavy losses.

The Governor of the Central Bank pointed out that Parliament had also been misled by the presentation of the estimated government revenue in the preparation of the budget in the recent past as an unrealistic revenue beyond the real situation.

He pointed out that due to this, a large amount of money was allocated for expenditure including ministries based on this estimated government revenue and eventually a large budget deficit was incurred which could not cover the expenditure and this situation led to a debt trap.

In addition, a number of issues were discussed, including the establishment of a mechanism for the proper collection of income tax, the prevention of irregularities in exports and imports related to various industries, including the gem industry, and the provision of proper revenue to the country.

The Finance Committee also agreed to table a motion in Parliament yesterday to increase the borrowing limit to one trillion rupees more than previously allowed under the Local Treasury Bills Ordinance.