Govt. indulgence?

On the same day that the International Monetary Fund (IMF) released a carefully worded statement calling on the Government to fast-track reforms despite reaching their commitments for the end of 2016 and focus on revenue-based fiscal consolidation, the supplementary allocation of Rs. 494 million was moved in Parliament to purchase duty free vehicles for select ministers.   

Twenty-five double cabs with Rs. 62.2 million for the Auditor General’s Department was also included in the allocation of nearly Rs. 500,000,000. 

According to the supplementary allocation request, Rs. 42.6 million will be used to purchase a vehicle for Special Assignments Minister Dr. Sarath Amunugama, Rs. 42 million to purchase a vehicle for Telecommunication and Digital Infrastructure Minister Harin Fernando, Rs. 86 million to purchase two vehicles for the Ministers of Irrigation and Water Resource Management, Rs. 41 million to purchase a vehicle for the Minister of Science, Technology and Research, Rs. 43 million to purchase a vehicle each for the ministers of Tourism and Christian Affairs, Higher Education and Highways as well as Sustainable Development and Wildlife.

Further approval was sought for Rs. 42.5 million to purchase a vehicle for the State Minister of Women and Child Affairs, Rs. 43 million to purchase a vehicle for the State Minister of Science, Technology and Research, Rs. 31.3 million to purchase a vehicle for the State Minister of Telecommunication and Digital Infrastructure and Rs. 37.4 million to purchase a vehicle for the Leader of the Opposition.

The dust has barely settled since the mammoth increase of VAT that slapped higher prices on pretty much everything last year. Together with the drought, inflation has seen a sharp spike at the start of this year with healthcare and education taking a hit. Contrary to claims by various Ministers, the impact is not on the rich as the Government has sidestepped direct taxes at every turn and to add insult to the VAT injury, hiked up vehicle prices to astronomical levels as well.

All Members of Parliament, especially Ministers, are given tax-free vehicle permits. But of course doing the decent thing is not what Sri Lanka’s politicians are known for, so they will not even introduce a formula that stipulates the make, size and cost Ministers can be entitled to use.

Many countries around the world, including Singapore, which the Government claims to admire so much, have similar formulas in place where Ministers cannot purchase vehicles as they please but have to adhere to guidelines approved by the State. These are elaborate guidelines that even give the engine capacity of vehicles so the formula does not become outdated. But adopting such progressive policies or reusing vehicles from the previous Government are conveniently overlooked. At the very least there should be a transparent index giving how many vehicles are used by each ministry and what is given to each minister. 

These jaw-dropping amounts come at the cost of public funds and Ministers, as all people know, already hold significant private wealth, which they can use to purchase vehicles. In June 2016 the Government proposed spending Rs. 1.1 billion to purchase vehicles, which was later deferred after a massive public outcry. This latest measure is unlikely to be spared the same censure. 

What is sauce for the goose is also sauce for the gander. Until politicians understand this they risk having their goose cooked at the next election.