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| Sunday, 3 November 2002 |
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Budget 2003 on November 6: Business leaders anticipate : Speedy economic development by Chandani Jayatilleke Top business leaders anticipate a constructive set of budget proposals aimed at expediting the economic development process in the UNF Government's second budget to be presented in Parliament by Finance Minister K.N. Choksy on November 6. In its second budget, the Government faces the challenge of bridging the staggering deficit of Rs. 339 billion. The aim of the Government is to keep the budget deficit at around 7.5 to 8 per cent of GDP by non-inflationary methods. The Government has been in power for the last 11 months and it has enough experience to present constructive proposals to revive the economic growth which has been stagnating in the past, a cross-section of the business community told the Sunday Observer. "We hope that the budget proposals would at least consider some of the ideas opined by the Chambers and the business community and at least consider some of the problems in the proposals," Managing Director, Hatton National Bank, Rienzie Wijetilleke said. "Following the successful, ongoing peace effort, the Government has the strength to bring out such development-oriented proposals," he said. The business community has expressed satisfaction over the way the Government has handled the economy so far. Government borrowings for 2003 are estimated at Rs. 350 billion and the Government has targeted revenue of Rs. 317 billion for 2003. The total estimated Government revenue is insufficient for the payment of the loan instalments and the interest of the PA Government which has matured, amounting to Rs. 327 billion. Vice President, Federation of Chambers of Commerce and Industry of Sri Lanka, Nihal Abeysekera said that he expects a development budget aimed at opening avenues to fast forward the economy. "Last year, economic growth was stuck at a point and real growth is yet to be seen although the Central Bank announced positive growth in the economy in the first six months of this year, after a negative growth last year. Therefore, we need an industry-activated budget. This is the need of the hour," Abeysekera said. President, National Chamber of Commerce of Sri Lanka, Chandra Embuldeniya said the budget should focus on reviving the small and medium sectors and rural economy in the country. "The previous budget also focused on these lines, and growth had been seen in this sector. I have proposed to the Government to declare a three-year policy on SME development to support small and medium scale enterprises." Senior Vice President, National Chamber of Exporters, Kingsley Bernard said the Government should do an evaluation on past budget proposals and determine potential sectors for growth to increase exports. A senior financial expert who did not want to be named said the tax system has to be given prominence. "We need a complete change in the tax system. Through a simplified tax system, the Government could seek more revenue to its coffers," he said. The Ceylon Chamber of Commerce in its budget proposals focused on minimising the negative effects of the proposals on government revenue during the year, but attempted to optimise private sector led growth and development. The proposals covered areas such as: Policy and reform issues to be addressed through the Budget 2003, Commitments and policy directions as per 2002 budget announcements which are to be affirmed and implemented through Budget 2003, Administrative issues faced by the private sector in implementing the budget proposals of 2002, Taxation proposals for 2003, Administrative issues in tax administration and Revenue proposals for 2003. |
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