Sri Lanka’s JVP makes major discovery: subsidies are financed by taxes
ECONOMYNEXT – Sri Lanka’s Janatha Vimukthi Peramuna, a party that expands the public sector and state enterprise to increase the burdens on the rest of society, has discovered that elected ruling class use taxes on the public to finance subsidies.
Taxes are the most transparent way of getting money from society to maintain the public service and politicians. Taking loans passes the burden to the next generation. Printing money generates inflation and currency depreciation.
JVP’s propaganda secretary Vijitha Herath had apparently just discovered that taxes were being used to finance spending and subsidies to ‘reduce the price of essential goods."
"That’s why the Government proposed to increase some taxes such as port and airport tax and taxes applicable for IDD (international) calls," Herath was quoted as saying by Sri Lanka’s Daily FT newspaper.
The party made no protest when the state salaries were raised by 10,000 rupees and has in the past added to tax spenders in society by forcing unemployable graduates to be given state jobs.
The JVP has previously opposed the creation of a contributed pension fund for state workers and also opposed privatization placing very high burdens on the people decades into the future.
Over the past year Sri Lanka’s central bank printed tens of billions of rupees to finance the deficit and busted the currency from 131 when the new administration came to power in January to 143 to the US dollar on Tuesday.
Analysts say the only lasting way to reduce the burden of the State on the people is to trim the state to the levels that people can bear and reform the Central Bank so that it cannot give various excuses to manipulate interest rates down and continue to print money. (Colombo/Nov24/2015)