Dr. W.A. Wijewardena urges government to ease revenue drive in 2027 Budget
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Former Central Bank Deputy Governor Dr. W.A. Wijewardena has urged the government to slow its revenue drive in the 2027 Budget, warning that excessive taxation is becoming toxic to the economy.
Delivering an oration on 29 October, he noted that government revenue rose from 12.3% of GDP in 2021, surpassing the IMF's 15% target in 2025 and likely exceeding it again through 2027.
He stated that collections grew through an 18% VAT, lower personal tax thresholds, a 36% top marginal tax rate, and mandatory tax identification numbers for adults.
Dr. Wijewardena warned that taxpayers face high direct taxes, regressive indirect taxes, and inflation while receiving deteriorating public services in return.
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How the story developed
- සිPresident Dissanayake proposed a digital transformation authority, an AI center, and student broadband internet vouchers.
- සිPresident Dissanayake allocated 200 million rupees for a Katunayake Airport flyover to support re-exportation centers.
- தHarsha de Silva criticized the budget for lacking structural change and maintaining previous expenditure levels.
- සිOpposition Leader Sajith Premadasa accused the government of concealing economic data and manipulating budget figures.
