2022 Budget only concerns how money can be spent: TNA
Tamil National Alliance MP Shanakiyan Rasamanickam expressed that the 2022 Budget only concerns how money can be spent, instead of how it should be generated.
While speaking to The Morning, he said that the only way to generate revenue is through foreign direct investments, however, Rasamanickam added that this was not addressed through the 2022 Budget.
“Budget is revenue minus expenditure. We have a massive expenditure and a budget deficit. I do not think there is a magic trick we can use to fix this other, than going to the IMF or attempting to restructure our debt. We always knew that nothing can be done to change the situation drastically,” he said.
Rasamanickam also added that overall, he is yet to look into the changes made to taxation in order to increase Government revenue.
“At a recent adjournment debate, I gave the Finance Minister some proposals on how to increase Government revenue by changing certain aspects of our taxation system, I am yet to assess those details,” he told The Morning.
He also added that even if the VAT and Taxation system was changed, it would still not be enough to pull the country out of the current economic state.
“We need a few billion dollars in the next six months to repay our debts. On top of that we need more to bring dollars into reserves so prices do not fluctuate which will lead to the creation of artificial black markets. The Budget does not have any methods in place to address these issues,” Rasamanickam concluded.