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| Sunday, 11 December 2005 |
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Budget targets rapid socio-economic resurgence by Jayantha Sri Nissanka The 2006 Budget has incorporated 90 percent of the Mahinda Chinthana the election manifesto of the UPFA Government and the Budget is geared to achieve a rapid socio- economic resurgence. The Budget has given priority to shift the centre of economic development from Colombo to rural areas in order to achieve balanced economic development which had been neglected by many budgets in the past. The Budget was even commended by Opposition members at its second reading in Parliament on Friday. Opposition MPs described the Budget as the first document introduced to resolve many unaddressed issues in rural areas during many decades. More than Rs 10 billion has been allocated for the welfare of the poor who have been neglected by many Government's in the past heaping more burdens on them but giving billions of tax relief to the affluent. The Budget has also allocated more funds for development work to achieve its set targets. A special feature in this Budget is the allocation of Rs. 8.5 billion for the fertilizer subsidy. However, President Mahinda Rajapakse believes that it is not a subsidy but a long term investment in the agricultural sector in which the majority of Sri Lankans are engaged in. President Rajapakse told the House "some say that my policies will lead to high deficit and inflation. They preach that the only way forward is the neo-liberal economic policies. But many countries are reshaping their economies through home grown policies. Several countries like India, China and Vietnam have introduced pro poor, pro-growth policies and achieved high economic growth as a result". The budget aims to implement 100,000 community based infrastructure projects through Jana Pubuduwa, Gami Pubuduwa and Gami Diriya programs to strengthen the rural infrastructure to facilitate impending economic revival in rural areas. For the first time, the highest level of capital expenditure of Rs.3,000 million will be allocated in 2006 to transform the Samurdhi program to a Mega Rural Development Program deviating from a subsidy program. President Rajapakse explaining as to why his Budget has given priority for rural development said" Despite a reasonably strong growth rate of around 5 percent in GDP and pursuance of a liberal economic policy for nearly three decades, development is Colombo centred. There is hardly any growth in some provinces. 30 percent of the population in the plantation sector and 25 percent in the rural sector are poor. Nearly 50 percent of the population is below the poverty line in 12 administrative districts. It is worse in the North and East areas". Therefore, no leader can be insensitive to such socio economic trends. There is nothing wrong in presenting an alternative way forward to failed neo-liberal economic policy. Mahinda Chinthana aims to re-engineer our economy over the next six years to create economic opportunities for the people to move out of poverty, the President noted. In order to achieve set growth targets in important sectors, a National Development strategy will be formulated for agriculture,livestock, fisheries, SMEs, plantation, industries, tourism, banking, infrastructure, rural development, education, health, skills development, poverty alleviation, governance and foreign investment. |
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