SL is caught in a vicious expenditure cycle : Opp. Leader Rajapaksa

Opposition Leader Mahinda Rajapaksa has said that Sri Lanka has now been caught up in a "vicious cycle" of increasing expediture for the election campaigns of the government, heavy borrowing to finance that expenditure and increasing the taxes on the public.

Issuing a statement, the Opposition Leader pointed out the government expects to earn a revenue of Rs 2077 billion by means of taxing people. He noted that this figure was twice as much as it was in 2014.

He said that as a matter of policy, his government kept the increase in taxes within the range of Rs 50 - 100 billion "so as not to oppress the public".

Mr. Rajapaksa proceeded to note that the loans obtained by the government have increased upto Rs 11,859 by last year - an increase by 62 percent when compared to the loans in 2014 which stood at Rs 7391 million.

The former President charged that the government's budget proposals which include the expansion of Samurdhi beneficiaries, increasing of pensions, granting of special allowances to public servants, and even the setting up of the Office for Reparations "will naturally lead many people to suspect that all these provisions are election related".