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Decentralization and fiscal devolution have assumed importance
in Sri Lanka particularly in the context of the ongoing
ethnic crisis, but Provincial Council system which arose
from the Thirteenth Amendment to the Constitution has several
inherent weaknesses and deficiencies.
This paper analyses the fiscal and financial
issues pertaining to the Provincial administrative system
including the relative significance and inadequacy of the
revenue sources devolved to the Provinces, the wide disparity
between the different provincial administrations, the nature
of provincial expenditure and the weaknesses of the prevailing
grants system on which the Provincial Councils depend for
their existence and functioning.
The paper also discuses the taxation and
fiscal changes including the concept of revenue sharing,
envisaged in the Government’s Proposals for Constitutional
Reform and whether they would correct the existing problems
of weak fiscal management and control.
Table of Contents
- Introduction
- Revenue Sources and Revenue Performance
- Revenue Capacity and Fiscal Potential
- Provincial Expenditure
- Revenue Transfers
- The Draft Constitutional Proposals in Relation to the
Thirteenth Amendment
- Conclusion
- References
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