Lessons from Sri Lanka on bad politics, mismanagement and populismThe path to ruination starts with bad politics. In Sri Lanka, rampant corruption undermines rule of law. Instead of sustainable sources of revenue for spending, Sri Lanka borrowed like no tomorrow from capital markets while taxes were slashed. By 2020, nearly 70% of government revenue was going toward debt interest payments. When the door to the capital markets slammed shut after Sri Lanka's sovereign rating was downgraded to junk, the country dipped into its reserves to spend instead of restructuring and living within its means.
Singapore’s sound fiscal policy and strong reserves are the results of financial discipline and prudence that the PAP Government imposed on themselves. Can we sustain this momentum? Can Singapore resist the march of populism from the Opposition?
https://sgmatters.com/lessons-from-sri-lanka-on-bad-politics-mismanagement-and-populism/
#badpolitics #governance #Populism #prudence #Reserves #SriLanka
