Sunday, November 20, 2011

Highest Allocation Of Funds For Debt Repayment In 2012

By Mandana Ismail Abeywickrema, The SundayLeader.
The highest allocation of funds by the government in the 2012 budget would be for the repayment of loans taken by the government, UNP parliamentarian and Economist Dr. Harsha de Silva.
The debt repayment for 2012 is estimated to be Rs. 914 billion inclusive of a Rs. 314 billion for loan installments and loan interest. The capital repayment of loans stands at around Rs. 600 billion.
Dr. de Silva said the loan repayment component was therefore far greater than the monies allocated for the Defence Ministry, which is Rs. 225 billion.
“Every cent brought in as revenue by way of taxing the people would not be sufficient to pay back the loans borrowed by the government,” he told The Sunday Leader.
He explained that the government has failed to tell the truth behind the statements made on borrowings aimed at developing the country. “After paying back the loan, the country would not have any money left.”
According to Dr. de Silva, the government now borrows monies to pay back the loans and the interest.