Rs. 20,000 salary demand unacceptable: Cabinet spokesman

• Tax revenue mainly goes for salaries, pensions

By Buddhika Kumarasiri - Kaduwela   

 “We do all this with tax revenue from the public. I do not  think that more tax burden can be imposed on the public,” Bandula  Gunawardena, Minister of Transport, Highways and Mass Media said  yesterday (27).   

 The Minister made these comments regarding the trade union  action by government employees demanding a 20,000 rupee salary increase.    

 The minister commented: “This is very unfortunate. I  regret that the people of this country are not aware of the realities.  It is the misfortune of the nation itself. According to the audit report  of 2022, the tax revenue of the entire country is Rs.1751 billion. Of  that, Rs. 1,265 billion is allocated for government employee  salaries,72 per cent of tax revenue goes to government employee salaries  and pensions, Rs. 560 billion is spent on benefits, including  Samurdhi, for the poor. Then the total tax revenue is gone.  

 After that, Rs. 1,565 billion is paid as loan interest. That too has been paid by borrowing money.   
 If the requested salary increase is granted, an unlimited  tax will have to be imposed on everyone, including government employees.  Are they requesting a salary increase, thereby placing additional tax  burdens on individuals who are already under significant pressure due to  taxation? People who do not pay taxes are only seeking an increase in  wages.   

 In spite of all the difficulties, the President decided to  increase the salary to a certain extent in January. Salaries are not  paid from the President’s or Finance Minister’s personal funds.