Law changes crucial: Yala

 By Gedion Timothy 
NATIONAL Research Institute director Dr Charles Yala says any change in Government legislation on finances can only be done by Parliament.
Yala was asked for his view on a need for change in the Fiscal Responsibly Act “as Government was now finding it difficult to manage its debts within the limit prescribed by the Act”.
The Act was enacted in 2006 to safeguard against fiscal recklessness and to keep national debt sustainable. The act restricts the Government from raising its level to above 30 per cent of Gross Domestic Product.
“The rule is within the framework. See if there is savings available. You can mobilise for example like the highlands highway,” Yala said.
“If it is not there then you seek a concessional loan that ADB or World Bank can fund with the lowest rate.
“When I am using creditable pragmatism, I look within the framework and start tipping off and then go to a process and make an informed decision. Ultimately, parliament is the supreme authority.
“So if there is going to be a major change in the budget framework for 2016, if it is going to be a big loan of some kind and if they want to amend, ultimately, parliament is the authority.”