|
Budget 2012:
Strong foundation for development
By Uditha KUMARASINGHE
Dayasiri Jayasekera |
Anura Kumara Dissanayake |
Chandima Weerakkody |
Akila Viraj Kariyawasam |
Vijitha Herath |
S.Adaikalainathan |
Parliamentarians and high ranking Government officials described the
Budget as a development-oriented Budget which has laid a solid
foundation to expedite development, encourage investment and provide
long-term relief to the people.
Government members also regret the interruptions by UNP members when
President Mahinda Rajapaksa presented the budget speech in Parliament.
Government ranks maintained the view that if the UNP cannot patiently
listen when the budget was being presented, It showed that that the UNP
was not for the people. This is not what people expect from the UNP.
Economic Development Minister, Basil Rajapaksa said the Budget
includes more than 100 proposals, mainly raise livelihood of the people
and develop Sri Lanka. The President in his capacity as the Finance and
Planning Minister has submitted all Budget proposals to the Parliament.
The proposals were initiated after consultation with the Chambers,
people representatives, farmers and businessmen. This is a people’s
budget because it has been prepared after consultation with the people.
The Budget has encouraged small and medium sector entrepreneurs by
giving tax concessions. Up to now, these tax concessions are given by
the BOI only for selected investors. Every one can benefit from these
concessions and there is no bureaucracy or political interference.
Otherwise investors have to go to the BOI and get a special license
or approval. Now every small and medium scale investor can invest
without approval from anyone. The Government has concentrated on small
Stakeholders in the Budget.
Defence Secretary Gotabaya Rajapaksa said as the President explained
the deffence allocations goes for soldiers. As very important
requirement is the allocations to put up barracks for soldiers.
During the past 30 years, they were living in the jungles and
fighting terrorists. Soldiers mostly occupied Government schools and
various other Government buildings. Now we have to vacate and give them
back to the Government.
Barracks have to be built for soldiers. Funds have also been
allocated to the Urban Development Ministry to develop small towns.
Financial allocations have also been made to continue the project to
control floods in Colombo, Kotte, Kolonnawa and Dehiwala-Mount Lavinia.
Funds have been allocated to the Coastal Conservation Department to
continue with conservation.
Senior Minister for International Monetary Cooperation Dr. Sarath
Amunugama said this is a Budget which has aimed at continuing the eight
percent growth momentum.
We have reached an eight percent GDP growth during 2010 and 2011
which is significant compared to India and China which is also getting
only around eight to nine percent GDP growth. This Budget will help us
to keep the momentum for 2012 as well.
That is being done while increasing social welfare measures given to
Samurdhi holders, fertiliser subsidy and other social welfare measures.
This is a growth-oriented budget. The SME sector is the widest spreading
sector in Sri Lanka. As we noticed in this Budget, emphasis has been
placed on people who go abroad and bring remittances here. With these
concessions, there should be more investment within the country.
DNA MP Anura Kumara Dissanayake said the Government in Budgets
presented in the past six years showed its inability to handle the
economy to cater to the fundamental requirements of the people.
Previous economic path
The Budget is a reflection of the previous economic path adopted by
the Government. It has not paved the way for change or to march forward.
Before the Budget was presented, what did the people expect?
There are about 400000 unemployed youth in the country. They hoped
that the Budget will create employment opportunities for them. State and
private sector employees expected an adequate pay hike as the present
salary they get is insufficient. But the Government has not been able to
fulfil that requirement. Farmers were also of the view that the Budget
will formulate a systematic mechanism to sell agricultural products by
providing concessions.
They also hoped the Budget would allocate funds to re-implement the
farmer pension scheme which has been suspended. But they have not been
able to realise this goal. The people also thought the Budget would
reduce the prices of essential commodities and provide tax concessions
which would enable them to ease the financial burden.
Basic requirements
The Budget has failed to introduce any such mechanism. This Budget
has failed to fulfil the basic requirements of the people who represent
various segments of the economy.
Education Minister Bandula Gunawardene said the unruly and
un-parliamentary behaviour by UNP in Parliament, was unfortunate.
President Mahinda Rajapaksa presented more than 100 new proposals to
increase production and employment opportunities as well as to generate
new income sources.
The Budget has also given various benefits and concessions to
farmers, the working class and small and medium scale industrialists.
This is a Budget which has created a turning point in recent history. It
has been presented based with a broad vision to maintain the Budget
deficit at a lower rate of 6.2 percent while reducing the cost of living
of the people. It has laid emphasis on key segments including public
servants, pensioners and even the disabled.
We as Parliamentarians who uphold parliamentary democracy regret the
unruly behaviour of the UNP in Parliament. DNA and TNA members remained
in the Chamber and patiently listened to the Budget speech. They may
have their own analysis and criticisms, but they acted in a responsible
manner to safeguard the dignity and decorum of the House by respecting
parliamentary tradition.
Leader of the House and Irrigation and Water Management Minister
Nimal Siripala de Silva said when some powerful countries are facing
recession, we are very happy about the people friendly and development
oriented Budget presented by the President. I see this Budget as a very
balanced Budget. When more funds are allocated for development, it is a
difficult task to allocate funds for subsidies and increase salaries of
public servants.
But the President in his capacity as Finance Minister has been able
to fulfil both these requirements by adopting a very balanced approach.
The Budget has allocated funds for new projects, increased salaries of
public servants and the subsidy given to Samurdhi beneficiaries.
It has also increased the subsidy given to tea small holders. The
President has presented nearly 190 fresh proposals. Therefore this is a
significant budget that has been presented when attempts are being made
by the Government to turn Sri Lanka into the “wonder of Asia”.
Referring to the untoward incident which occurred when the President
delivered his Budget speech, the Minister said the UNP could not even
give a hearing to the Budget as they are engaged in hateful and
hypocritical politics.
They are not in a position to tolerate these things. This is not what
the people expect from the UNP. As the President was winding the Budget
speech, he said the Opposition should organise itself as a strong
Opposition and make constructive criticism if there are any shortcomings
in our programs”.
Now the Opposition has lost its image as an opposition, as they have
ignored their role. So we call upon the UNP to enter the proper track
and play a legitimate role as an Opposition. We don’t have opposition
for that.
Foreign Employment and Welfare Minister Dilan Perera said the Budget
has covered all segments of society including public servants, farmers,
expatriate workers.
The Budget is based on scientific methodology. However, the protest
made by the UNP during the Budget speech clearly showed their political
bankruptcy. They could not even listen to the Budget speech.
Amidst various divisions made within the UNP, it is good if the UNP
can unite by resorting even to this kind of act. According to
information gained by us, the division within the UNP has worsened due
to this unruly behaviour in Parliament. President Mahinda Rajapaksa
presented a national Budget, it does not belong to the SLFP, UPFA or the
UNP. If the UNP cannot listen patiently when the Budget is being
presented this shows that the UNP has no feeling for the people.
Deputy Speaker Chandima Weerakkody said this is a very progressive
Budget which has granted relief to various sectors specially to public
sector employees, small and medium scale entrepreneurs, plantation and
agriculture sectors.
I believe this Budget is a grand opportunity to those who want to
develop themselves as entrepreneurs and businessmen in this country.
Developed nation
The President has designed the Budget to cater to the expectations of
the masses and the majority of Sri Lankans. I believe this would pave
the way to Sri Lanka becoming a developed nation.
Deputy Education Minister Wijith Wijayamuni Zoysa said the student
generation is the target group of this Budget.
The President has targetted students as being in the forefront when
attempts are being made by the Government to turn Sri Lanka into the
“Wonder of Asia”. I believe the “Mahinda Chintana” contains a vision to
make this wish into reality.
Environment Minister Anura Priyadharshana Yapa said history has
proved that the UNP has patiently listened even to Budgets presented by
Dr. N. M. Perera. The UNP did not behave in such an irresponsible manner
at that time. There is no meaning of this ludicrous act committed by the
UNP inside Parliament. It is the normal tradition in the House for any
political party to listen to the Budget speech. In a situation where the
DNA and TNA listened to the speech, the UNP failed to maintain
discipline in the House. We regret this situation.
Ports and Highways Deputy Minister Rohitha Abeygunawardene said the
people will accept the Budget as a successful Budget. The resounding
victories achieved by the Government in the recently concluded elections
have clearly proved the success of the past six Budgets presented by the
President.
Commenting on the untoward incident in Parliament, the Deputy
Minister said as the Government, we express our displeasure and regret
over the UNP. The next day country’s people will also follow this
behaviour.
He said the UPFA was also in the Opposition and on one occasion
President Mahinda Rajapaksa was the Opposition Leader.
Whatever Budget is presented in Parliament and if some of the details
proposed in the Budget are not clear, it is the responsibility of a
vibrant Opposition to criticise or argue about it inside Parliament.
But the UNP did not have the patience even to listen to it. I think
the UNP does not fulfil its role as the Opposition. The President
pledged to give Rs. 2,500 pay hike to public servants. The President
under the “Mahinda Chintana” has fulfilled this pledge. The President
has presented a very important Budget to a country which is in the
process of strengthening its economy. However we regret the UNP’s
inability to even give a hearing to the Budget.
Co-operatives and Internal Trade Minister Johnston Fernando said as a
Parliamentarian who has also represented the Opposition, he has never
seen an Opposition behaving in this manner when a Budget is being
presented.
The intention of the UNP was to interrupt to the Budget speech and
walk out of the Chamber expressing opposition to it. We could see the
unruly behaviour of the UNP being led by UNP MP Mangala Samaraweera.
This is a very bad example set by the UNP in Parliament. It is the duty
of a responsible Opposition to carefully listen to the speech and
express their views later. Interruptions were made when the Leader who
safeguarded the country from terrorism makes the Budget speech in
Parliament, it gives a wrong impression on our parliamentary system.
Even foreign diplomats had come to Parliament to listen to the speech.
In a situation where there are so many clashes within the UNP, the UNP
should not behave in this manner.
Technology and Research Minister, Pavithra Wanniarachchi said the
Budget has provided an opportunity to cultivate lands. After State owned
plantation companies were vested with the private sector, most of those
State properties had been misused by private sector companies. As tea
small holders have turned into successful entrepreneurs, the President
in the Budget has taken a very progressive decision to give uncultivated
lands belonging to large scale private sector plantation companies to
the ordinary people based on a long-term lease basis.
This is a development-oriented Budget which has provided relief to
all sections of the people including pensioners, infants and mothers as
well. It has also laid a solid foundation to enter into a long-term
program to realise development targets of the country.
DNA MP Vijitha Herath said the people expected relief from this
Budget in keeping with the escalating cost of living. Specially public
servants expected a Rs. 10,000 pay hike. But they were given only a 10
percent allowance. This is a pittance and it is not sufficient for them.
People also hoped the Budget would introduce some methodology to provide
employment to unemployed youth. In the previous Budget, the jobs were to
be provided to 15,000 unemployed graduates by covering each Grama
Niladari division. The Budget has not made any reference to unemployed
of graduates. It has shattered the hopes of the people by further
increasing the country’s dept burden. MPs have the right to
democratically express their views in Parliament. The UNP expressed
their opposition to the Budget because it was their right. Nobody will
expect this type of situation to arise in Parliament. As a result of
this incident, the right of Opposition MPs to democratically express
their protest was disturbed.
TNA MP S. Adaikalainathan said the TNA is not satisfied with the
proposals put forward in the Budget. He maintained the view that the
Budget could have given more benefits to the people in the North and
East. He said his party would take a closer look at the proposals during
the Budget debate.
UNP MP Dayasiri Jayasekera said the Budget has not paved the way to
create long-term economic development as said by the Government. Since
2005, the ideology of the UPFA Government was to create an indigenous
economy within the country. However, all the Budgets that have been
presented since 2005 were based on the principles of an open economy.
The Government could maintain eight percent economic growth because of
State sector investments.
Otherwise, nearly 55 per cent of agreements signed with the BOI for
foreign investments have been cancelled. In this situation, there is a
decline of the flow of foreign direct investment.
The initiatives taken in this Budget may benefit the local investor
to some extent, foreign investors are faced until certain problems in
making investments here.
The devaluation of the rupee by 3 percent would lead to a trade
deficit as there is no ability to increase export earnings within a
short period. The country will have to depend on imports. At present,
our export earnings are less than income gained from imports. In
addition, the devaluation of the rupee would lead to increase in the
prices of fuel and other essential commodities.
He said highways are mainly used in most countries to transport
containers, not for passenger transport. That is how highways have been
utilised in those countries to develop their economies. However, in our
country containers have been prohibited on the Southern Expressway. The
income gained from passenger vehicles would not be sufficient to develop
our economy. If the Expressway is opened for containers, more investors
will come to Sri Lanka to start factories at the receiving end of the
Expressway.
UNP MP Akila Viraj Kariyawasam said the Budget is not a favourable
one for youth as it has failed to generate employment opportunities for
them. The Budget has not allocated funds for industries which have the
capacity to generate employment. Today the Government is dependent on
foreign remittances. The people go to foreign countries due to lack of
employment opportunities in Sri Lanka. Even women go abroad as
housemaids owing to the severe economic hardships faced by them and
their families.
A large number of professionals have also migrated as they are
unabled to earn an adequate salary according to their qualifications and
experience.
The devaluation of the rupee would also have an adverse effect on the
people and the country as a whole. The people expected the Budget would
provide them peace dividends. |
