Loans obtained for capital expenditure must generate anticipated revenue – Koshy Thomas

Loans obtained for capital expenditure must generate anticipated revenue – Koshy Thomas

Written by Bella Dalima

15 Aug, 2014 | 9:54 pm

“Growth without balance means nothing” – Those were the words of Koshy Thomas, the Head of the Outcome Based Budgeting Unit of the Malaysian Ministry of Finance.

Thomas was the keynote speaker on Friday, at a luncheon meeting organised by the American Chamber of Commerce in Sri Lanka or AmCham Sri Lanka.

He addressed the gathering on the topic, Implementing the Hub Strategy: an International Perspective.

The luncheon meeting held in Colombo on Friday was well-attended by a gathering including several prominent business personalities.
At the event Department Head of Outcome Based Budgeting Unit – Ministry of Finance, Malaysia, Koshy Thomas expressed these views:

“Growth without balance means nothing. In a case like Sri Lanka and certainly in a developing country like Malaysia, the public sector contributes significantly to GDP growth. So, this is why we need to manage this process, because if you’re just going to end up paying debts, then it’s not really a very productive thing. If you borrow money for something then end of the day you got to make sure it generates the kind of revenue its supposed to generate. If you’re going to borrow money for a specific project, and it’s not going to generate money, then that money has to come from somewhere else. From your operating expenditure or your other revenue streams. This is important, so make sure that whatever money your borrowing, whether it is internally or externally, for capital expenditure, it must generate the type of revenue that you are anticipating.”

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