Budget deficit figures in 2021 budget proposals in Sri Lanka wrong - FactCheck

Fact Check Sri Lanka stated that Prime Minister Mahinda Rajapaksa's statement on the budget deficit for 2019 increased to 9.6% of GDP was wrong. 

Quoting annual reports from the Ministry of Finance, Fact Check Sri Lanka said, "It is incorrect to compare a value of 5.7% in 2014, which does not account for unpaid claims, against a figure of 8.4% in 2019, which accounts for unpaid claims. It is also inaccurate to calculate the budget deficit by considering unpaid claims in expenditure without applying the same basis to revenue".

Rajapaksa said in the budget speech, "…the budget deficit which my government brought down to 5.7 percent of Gross Domestic Product (GDP) in 2014, has increased to over 9.6 percent of the GDP by 2019… outstanding unpaid bills amounted to Rs. 243 billion, while the foreign debt financed expenditure amounted to Rs. 212 billion remained unaccounted […which] resulted in the reported budget deficit for 2019."

Opposion MP Dr. Harsha de Silva said in a tweet that the Secretary to the Treasury was finally responsible for this kind of errors. He pointed out that he had raised it with him at the Committee on Public Finance while the official tried to justify it."

Read the Fact Check report here >>

Wrong facts in budget speech checked

FactCheck (@factchecklka) pointed out that Prime Minister and Finance Minister Mahinda Rajapaksa's budget speech included wrong facts about tax collection. 

The Prime Minister said, "Tax in place of the various goods and service taxes and levies, imposed under multiple laws and institutions on alcohol, cigarettes, Telecommunication, betting and gaming and vehicles, which accounts for 50 percent of the income from taxes and levies. It is expected through this reform to direct Institutions under special legislation such as the Excise Ordinance to have a more focused regulatory engagement in facilitating the government to secure its revenues otherwise lost through sale of illicit alcohol and cigarettes."

FactCheck pointed out "50% of total tax revenue would amount to Rs 867 billion in 2019; based on figures available to us, taxes collected on these goods and services amounted to less than Rs 500 billion, which is less than 30% of total tax revenue."

The Prime Minister proposed to introduce a special Goods and Services Tax for, alcohol, tobacco, gaming, telecommunications replacing several different taxes.