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Sunday, 10 November 2002  
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Budusarana On-line Edition





Budget 2003 : public - opinion People adjusting to Budget measures

by Vimukthi Fernando and Farah Macan Markar

One of the looked forward to events of the year in parliament is over. The Minister of Finance K. N. Choksy made the Budget speech last Wednesday. What do people think of the budget? Has it given them any relief or has it brought more burdens to the masses? The 'Sunday Observer' interviewed a cross-section of people to find out their views.

The general apathy of the masses to the budget was notable. Many who were contacted said they had no time and no questions when the economists and politicians do what they want eventually, regardless of the needs of the masses. They were preparing adaptive measures, to forgo what they regarded 'non-essential' or cut down some expenses to meet the high rise in essentials'. Those who had some awareness, though did not see how the government could have performed differently with a minus growth behind them and did not see any relief' to the populace, but a higher burden on their shoulders.

Gamini Gamage (48) - Manager of a clothes shop:

"The working people these days find it difficult to have a good life. The cost of living is so high. It is difficult to make a living when the prices of every essential item goes up. The government has promised government servants a salary increase, which has not taken place so far. I am disappointed about this. The government should not give false promises. In the new Budget it was said that the economy has improved slightly. This is something which should happen. It is only then that the people can believe in the government and have some faith in it."

Sudila De Silva, a 26 years old, International Relations graduate of the University of Colombo: "This Budget is a reflection of the poor planning and implementation of policy makers and leaders who are in control of the economy. The utopian ideas of the present ministers when they were in the opposition, are haunting them right now. People of the south perceived that the cessation of hostilities in the North would reflect positively in the economy, which had not happened so far.

Though the expectations of the masses were very high when the UNF government came into power, those who were in touch with the economic realities knew it could not be achieved short or long term. The government's focus right now is on two main areas, the peace process and consolidation of power in parliament. These would not jump start an economy which experienced a minus growth just two years back.

As for the youth, though the first Budget of the UNF government was aimed at creating new opportunities in the employment sector and income generation, this was not reflected in the second Budget. Incentives given to the private sector would not give the necessary stimulus to generating new employment. M.C. Costa (72) - clothing seller down York Street:

"The budget does not mean a thing to me. It has not helped me so far. I have no faith in it today. The price of rice, coconut, flour and sprats have all gone up. There is not a thing that is affordable. It is almost impossible to live like this. This is what the budget has done so far. How can I place any faith in a new one?

I've been doing this job for 50 years. A job carried on by four generations in my family. However, today I live in great difficulty and sorrow. I am no longer allowed to sell my items here in the streets. The police constantly keep chasing me. I'm not angry with the police who are only doing their duty. I am angry with those people who gave these orders".

Shanmugalingam, a retired government servant now managing a communication and ticketing agency: "It is hard to say anything right now, maybe there is more to come. Perhaps, the share market might do well. But, the question is how are they going to bridge the deficit? If the cost of living is not brought down, it will affect the middle class, like us very badly. Even now, 2-10% VAT on some items, though it is small, affects us adversely. I have two children engaged in higher studies in semi-government institutions, and their education would be affected by way of institutional fees and prices of books and other educational items.

Regarding the tourism sector, especially where ticketing is concerned, increase of tax is a deterrent to travel abroad. People come to us expecting the best service for the least cost. The tax will badly effect customers travelling to the Middle East and Cyprus, who are mostly poor women going abroad for employment and those who visit India on pilgrimage. Though there had been some small relief on some items, public servants again are badly affected with the 8 percent contribution for the pension. Another question is why the budget voted more money for security? I don't know why it was needed when there is no war situation."

Indrani Almeida, 38, a Traffic Warden manning vehicles in the heart of the city:

"This Budget is one of the worst I have known. I simply have nothing to say. Whatever the government is, we poor, are the ones who always suffer and suffer most. We are on the streets all the time, be it rain or sun and do not even get enough for our labour. How can we survive when all consumer items are sky rocketing. Bread, rice, sugar, kerosene everything is so expensive. And no relief can be seen at all from this Budget."

Mohammed Fazal a 39 year old Three Wheeler Driver:

"The Budget has no meaning to me. It is something politicians just like to talk about. There has been so far nothing really in it. It has not helped poor people. It is the household budget deficit we are bothered about. We cannot keep up to the cost of living, no matter how hard we work the money we earn is not sufficient to cover our basic needs. The cost of living has gone up so much in the last few years, we are loosing a lot of clients. Businessmen who used to use our Three Wheelers those days now go by bus. I have two children who are schooling.

My whole family depends on what I earn through driving this Three Wheeler. Now my income has come down to Rs. 250 a day, out of which I have to give Rs. 200 to the owner. The remaining 50 rupees is not enough for my family to get through with. Some days I go home empty handed."

Ruwan Gunawardene, in his forties and employed as a Clearing Agent:

"This Budget of course gives some incentives in the import-export sector. It is good for businessmen, but it does not help the common man. We still have not been able to overcome the fall, faced in the shipping and import-export sectors around 1996. Business was very good from the late 70s to about early 90s, but not any more."

Janaka Fernando and A.W. Nihal, two friends (barbers) in their late twenties employed at a saloon in the heart of Colombo:

"We were not very enthusiastic about it. Why should we be enthusiastic when it offers us no benefit? So far, over the past so many years it was the common man who bore the brunt of the burden. This Budget has made no difference. Gas, bread, milk powder, so many times were the prices have gone up within the past year? We were expecting some relief, a reduction in the price of consumer goods. Yet, nothing happened."

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