Editorial

Security

Politics

World

Letters

Sports

Obituaries

Archives

'Mahinda Chinthana', the presidential election manifesto of Prime Minister Mahinda Rajapakse launched last week will be subject to comment, analysis and heavy criticism during the coming few weeks of the much heated election campaign.

The 'Mahinda Chinthana' manifesto has not presented entirely new economic policies or reverse policies of the present UPFA government. It seems that Premier Rajapakse is seeking a mandate to continue the UPFA manifesto Rata Perata presented at the 2004 general election.

In fact there is no reason for the PM to change the present government's economic policies. Because the Rata Perata policy statement of the UPFA government was an important turning point of the economic policies in recent history. It was the first time after two and half decades that the country trusted its own resources and strengths as the major forces of economic development.

It was the first time after the introduction of the open economic policies the country stressed the need to develop the agriculture sector and rural economy. It considered the SME sector as the backbone of the economy as reiterated in the 'Mahinda Chinthana'.

These policies were welcomed by the business community in the country because it did not turn the economy into a closed inward oriented model as predicted by the opposition. It considered the private sector as the engine of the economy and the government as the facilitator.

PM Rajapakse reiterated this at all meetings with representatives of the business community after he was nominated as the Presidential candidate of the SLFP. The manifesto proposes to maintain a realistic economic growth rate of 8% over the next six-year period which is similar to the UPFA's target in the medium term. Even after the tsunami disaster and external shocks such as high oil prices last year the economy moved forward and a 5.5% growth is expected this year.

The 'Mahinda Chinthana' clearly ruled out extreme neoliberal policies and says the mere reduction of public expenditure and the resulting reduction of the budget deficit is not characteristic of prudent public finance management.

It emphasises direct government expenditure as an essential priority area and thereby ensure maximum returns to the national economy. The UPFA policies are also similar and believed that higher government investment is essential for fast development of the economy.

The present government increased the expenditure on infrastructure development as well as increased expenditure on the education and health sectors and relief for marginalised people but took action to maintain a lower budget deficit by increasing government revenue.

Government simplified the tax system and improved the efficiency in the tax collection. As a result government revenue increased by 24% this year.

The manifesto also emphasises the need for a strong government sector and clearly says that the strategically important state owned institutions such as electricity, banks and transport would not be privatised.

(GW)

| News | Business | Features | Editorial | Security |
| Politics | World | Letters | Sports | Obituaries | Junior Observer |

Produced by Lake House
Copyright 2001 The Associated Newspapers of Ceylon Ltd.
Comments and suggestions to :Web Manager