The politicians are busy, digging yet another grave in which they intend to bury more consumers. Changes are afoot, to pull the teeth of the Fiscal Responsibility Act, rendering the requirement to run a proper budget unnecessary.
The Fiscal Responsibility Act was passed by the UNP Government in 2003 and was designed:
a) to increase transparency by publishing regular statements on public finances;
b) to limit the size of Government debt.
The proposed amendments are to allow further borrowing and (probably) reduce the frequency of disclosure.
This means that the Government can continue its unsustainable spiral of spending, borrowing from commercial sources to do so. Why does the Government love to spend? Because the spending results in purchasing, on the most favourable terms, of goods and services supplied by politicians and their cronies. Most favourable for the suppliers that is, not the public.
This is extremely lucrative for the cronies who are seen running around in the most expensive luxury vehicles and jetting off on exotic holidays. No wonder BMW sales are up 280%, even while small car sales are down 84%.
The debt does need to be repaid, and this is where the public come in. At the moment there is a proposal that will increase electricity tariffs by between 58%-126%. This is the inevitable result of the policies followed. How else are the public supposed to pay for the armies of unemployed graduates and the colossal waste that takes place at this institution? As I noted before, producers of private power (more cronies) are laughing all the way to the bank, while we must stump up so that they can party.
In the latest absurdity, even while we are contemplating yet another attack on our wallets, the poor, long suffering casino owners are to be given a tax break. This is not just wrong headed policy, its positively evil.