Hon. Chandima Hettiaratchchi

¶ 01 Hon. Deputy Speaker, in debating the Fiscal Strategy Statement (FSS) 2026, I will recall the objectives of the State Financial Management Act:

¶ 02 1) Establish standards, rules, and procedures for transparency, accountability, discipline, effectiveness, efficiency, and frugality in managing State revenues, expenditures, commitments, financing, State equity, assets, and liabilities.

¶ 03 2) Specify rules and procedures for fair, evidence-based oversight, evaluation, internal control, accounting, and reporting in the preparation, approval, and execution of the annual Budget, including enforcement of fiscal responsibility goals and rules.

¶ 04 3) Specify performance and accountability norms.

¶ 05 Whatever one’s authorship, this is now the law. It arose in a context of admitted bankruptcy and public repudiation of misrule. Those responsible must be bound by these objectives. For an anti-corruption movement and Government like ours, there is no barrier to embracing this binding ethical and policy framework.

¶ 06 What is the FSS for? It states, ahead of the Budget, the Government’s fiscal strategy for the next five years—direction, borrowing limits, spending ceilings. Its purposes include:

¶ 07 - Presenting a formal Government fiscal strategy to Parliament and the public before the annual Budget. - Providing strategic guidance for the next Budget. - Establishing a basis for realistic assessment of fiscal performance. - Strengthening parliamentary oversight of performance against strategy, and enhancing transparency and accountability.

¶ 08 With such a plan, we can avoid past ad hocism—such as egregious misuses in SOEs or failures in essential imports like medicines. Clear frameworks prevent abuse of public instruments and ensure resources serve citizens.

¶ 09 For those asking “what exactly will you do,” read page 12 of the 2026 FSS. It sets out the measures to reach the targets:

¶ 10 - Revenue measures: lowering thresholds, revising rates, raising corporate income tax, and aligning VAT and excise—boosting revenue and consolidation. - Expenditure rationalization: SOE reforms/privatizations to reduce transfers; prudent development spending under the Act; and rationalizing public sector numbers.

¶ 11 If reading the whole report is hard, at least read page 12.