The annual budget of an organization (and the State is no exception) must necessarily be placed within a longer time frame of a strategic plan. If not, the annual budget degenerates into a mere numbers game. To my mind, this year’s budget for 2011 appears to be strategic because it is underpinned by a policy regime and a strategic vision.
The tax reforms, including the reduction of personal and corporate taxes, the focus on value-added exports, and investments in infrastructure and research & development, are all strategic. The institutional and administrative structural changes as in the case of the role of the BOI will also have implications well beyond the year 2011. The principal challenge is of course to ensure that the revenue and fiscal deficit targets are achieved. Indeed, the boldness of the budget must now be matched by the brilliance of its execution.
Prof. Uditha
Liyanage
Professional/Academic |
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