June, 4, 2014
Compared to 2012, the subsidy that the government provided through last year’s budget to cover the losses in operating costs of government institutions has increased by Rs. 02 billion.
Accordingly, the government provided Rs. 13.8 billion through the 2013 budget to cover the losses in operating costs of government institutions while it had provided Re. 11.8 billion in 2012.
Analysts point out that this shows the urgent need to improve the financial situations of government institutions.
While Rs. 08 billion had been allocated last year to Sri Lanka Railways and the Postal Department alone, the funds allocated in 2012 were Rs. 7.1 billion.
Last year Rs. 5.1 billion had been allocated to cover the losses of the Sri Lanka Transport Board, Rs. 700 million had been allocated to other institutions like the Sri Lanka Broadcasting Corporation, Palmyrah Development Board, Ceylon Fisheries Corporation etc.
While the Sri Lanka Railways has incurred an operating loss of 5.2 billion in 2013, the operating loss of the Sri Lanka Transport Board has been Rs. 4.3 billion.
More attention needs to be focused towards this trend as these institutions continue to spend the tax revenue collected from the people while the International Monetary Fund (IMF) continues to stress on the decrease in state tax revenue.