NCE collaborates with Verite Research on platform to track implementation of Budget Proposals

This pioneering platform has been developed by Verite Research. It has been used to monitor the track record of the Government in executing the 2017 Budget Proposals during the first six months of this year. 

The platform has tracked expenditure on proposals with an allocation of over Rs. 1 billion. 37 such proposals for the year 2017 whose total value is Rs. 116.9 billion (which is over 80% of the total value of such new expenditure proposals) has been tracked.  It has been found that out of these, information on 51% of the proposals has not been disclosed, 14% of the promises have not been honoured, and out of the balance which has been implemented 32% are behind schedule, and only 3% are showing progress. 

At a recent press conference conducted by Verite Research to discuss the findings NCE President Ramal Jasinghe had highlighted the following:

The Government makes many promises and has many visions and plans outlined in different documents. However, it is more important to deliver on the promises, since it needs to realise that being consistent is important to the business community related to predictability in the business environment.

Money allocated for a global marketing campaign to boost exports has still not been utilised 

It was promised to establish an Exim Bank, which would have been very helpful to exporters. But it is yet to be established. 

The Tax structure of the Budget Proposals has a direct impact on the business plans of exporters which usually covers a window of three to five years. In this respect the proposals need to be consistent to achieve the export targets of the country. 

The Tax structure has also to be consistent with the development of the SME sector to encourage exports. 

Adequate protection should be provided to the manufacturing sector to develop their products to meets standards of the International Market Place by engaging in R & D, for which tax relief vis a vis the Inland Revenue Act should be provided.  However, the new requirement under the Inland Revenue Act that 80% of the Products of an Enterprise should be exported to enjoy tax relief, is not conducive. 

Enable implementation of a payment gateway such as ‘Paypal’ to operate in the market to foster the development of small scale export ventures. 

The Budget Proposals of the NCE submitted to the Ministry of Finance in respect of 2017 had been formulated after discussions at a Forum, including officials of the Ministry of Finance, and Verite Research. Hence the Chamber expected the proposals to be positively considered for implementation.