New era dawns in Sri Lanka :
Budget 2013 will usher in prosperity for all
The following article
is based on the speech made by Economic Development Minister Basil
Rajapaksa at the debate on the second reading of the Budget for 2013.
This is the eighth budget presented by the Government of President
Mahinda Rajapaksa.
“I have to briefly comment on the Budget, its fundamentals and the
analyses some people made of the budget during the debate. During the
2005 Presidential Election campaign, Mahinda Rajapaksa introduced a
vision for building a new Sri Lanka based on Mahinda Chinthana.
Instead of discarding this concept after the election, he made it a
set of policies and an economic and social program to be implemented
during his presidency.
It was the same with the Mahinda Chinthana; Forward Vision introduced
later in 2010. This is a budget aimed at providing every citizen with an
opportunity of benefiting from dividends and thereby improving their
living conditions. It is based on several points in the Mahinda
Chinthana and the Mahinda Chinthana; Forward Vision.
All our ancient rulers knew that without ensuring the people's food
security, it was impossible to protect the nation's dignity,
independence and sovereignty. This very reason made our people to ensure
that our country was self-sufficient in food. We have drawn special
attention to food security in view of the current global situation.
Equally important is water. It is very difficult to find another country
with a civilisation based on irrigation such as ours.
Environmental protection is essential for protecting water resources
and ensuring clean air. All living beings need these for their survival.
We know the lack of clean air and environmental degradation are among
the major problems in developing countries. Hence, we have taken
environmental protection as the basis for this Budget.
The difference between humans and animals began with the use of
energy. It is from this use that man moved forward. The entire Budget
has focused on energy conservation and reusable energy.
In every budget of the President, steps had been taken to provide
everyone with electrical power, water, housing, sanitation, a good
education for children and health services in accordance with the
Mahinda Chinthana and the Mahinda Chinthana; Forward Vision. This Budget
too is aimed at achieving these goals.
A main target of the Mahinda Chinthana is the individual and family
for the well-being of which various programs have been launched and
funds allocated. Especially through Divi Neguma, we hope to pay
attention to all families and individual family members. The Budget has
provided relief assistance for this purpose. Whatever the job or
profession of a person is, whatever his weaknesses are and wherever he
resides, measures have been taken under this budget to improve his
living standard.
Every budget of ours focused on the village. We know that over 80
percent of our people live in the villages and plantation areas. The
village is the foundation of our country. Its foundation has been 36,000
villages and 14,026 Grama Seva divisions. Therefore, we have included
road networks, power, water, irrigation, schools, temples and even
maternity clinics as areas requiring attention under the Gama Neguma
village development program.
Development of small towns
This Budget shows facilities provided for the development of small
towns under the Pura Neguma. Allocations of around Rs. 1 million have
been made to each of the 14,026 Grama Seva divisions for the development
of villages into small towns under Pura Neguma. In addition, a proposal
has been made for the first time under this Budget to provide monetary
assistance to 206 Pradeshiya Sabhas which get an income of less than Rs.
1 million.
Funds have also been allocated under Palath Neguma for every
Provincial Council to focus on development schemes that meet the
specific needs of each PC area.
Here I have to counter the allegation a Tamil National Alliance MP
has made, that funds allocated to the North are less than what has been
given to other provinces. I request him to have a look at page 334 of
Volume 3 of the budget estimate 2013 (draft). In it, the first to come
under regional development is the North.
The amount allocated under the Uthuru Wasanthaya is Rs. 8,307
million. Only Rs. 2,285 million has been allocated to Ruhunu Udanaya,
development of the South. Rajarata Navodaya has got even less - Rs.
1,735 million - for developing the North Central Province. The next
major allocation - Rs. 3,068 million - has been made to Ran Aruna,
covering the Western Province. Apart from this, no other province has
been allocated more than Rs. 2,000 million.
Palath Neguma will be followed by programs to uplift the entire
country. It is for this that we are investing on a large scale. The MP
who spoke earlier on the Hambantota Port and the Southern Expressway
showed the yearly income they generated. If such persons were there when
King Dhatusena built the Kala Wewa or King Parakramabahu built the
Parakrama Samudra, they will ask the reason for building it, after
calculating the value of the paddy from the first harvest. Then they
will say it would take years to benefit from the project.
If such arguments were raised in those days, we would have neither
the Kala Wewa nor the Parakrama Samudra. These are long-term
investments. Please do not be hypocritical. These are investments being
made for the sake of future generations. It is because Kings Dhatusena
and Parakramabahu built waterways such as the Jaya Ganga that our
country became self-sufficient in food. It is because of constructions
such as Sigriya that we can proudly talk about Sri Lanka's history.
We made massive investments to develop our country. The building of
the Hambantota Harbour and the expansion of the Colombo South Harbour
were delayed for years. Every government including the UNP attempted to
build these. When our harbours are unable to accommodate huge container
ships because of the increasing size of such vessels on the world's sea
lanes, the number of ships calling at our harbours will lessen,
invariably causing an increase in shipping costs.
When it is possible to transport goods at a much lesser cost on a
container ship that can carry 50,000 tons, we are compelled to pay more
for transporting on small vessels because we do not have a harbour to
accommodate larger ships. Consequently, we are driven out of the market.
Every exporter in this country stresses the need for a bigger harbour.
Power generation
When the speed of economic progress increases and every village and
house are supplied with electricity, more power generation is needed. We
had a plan drawn by experts for generating electricity. That plan had
not been implemented. The Norochcholai coal power plant, Upper Kotmale
hydroelectric power plant and the Kerawalapitiya power plant had all
come to a standstill.
But since President Rajapaksa took a bold step and commenced work on
these projects, Sri Lanka has become the only South Asian country that
has a 24-hour electricity supply seven days a week with no power cuts.
You are aware of the condition of other public services when he took
over the country. Foreign investments had come to zero and tourist
arrivals had completely ceased.
The strength of the State sector had been completely reduced and it
was doing only day-to-day work. No capital investment had been made in
this area when President Rajapaksa took over the country.
Even worse was that the people had been deprived of their fundamental
right to live. I wish to stress here it was only after he took over the
reins that the country was brought under one flag and the people's right
to live was secured. The rest was achieved thereafter.
If we look at this horizontally, programs have been worked out in the
Budget to develop the individual and the family, village and town and
the country. Increased investments had been made in each of these areas
under this Budget.
Our first priority is agriculture linked to food security. This
country has achieved great successes in the field of agriculture.
After suppressing the Uva uprising, the British Imperialists realised
that our country, being an island, had ensured food security and
self-sufficiency since ancient times. They saw that the reason for our
pride, sovereignty and self-confidence was our self-sufficiency in food.
So what did they do? They destroyed our village tanks, reservoirs and
irrigation systems and destroyed our self-sufficient economy. As a
result, we were compelled to import rice to feed our people. During
World War II, the people of this country had to eat a very low-quality
rice variety called Bajiri. Thereafter, our people were made to become
addicted to American wheat flour. After Independence, several heads of
state tried to make this country self-sufficient in rice. The effort
began with D.S. Senanayake and continued under leaders such as S.W.R.D.
Bandaranaike, Dudley Senanayake and Sirimavo Bandaranaike, but they
failed to achieve the goal.
But President Rajapaksa succeeded in reaching the target by giving
farmers a fertiliser subsidy, cultivating abandoned paddy lands,
repairing big and small irrigation systems and building new irrigation
schemes. All this helped our heroic farmers to make this country
self-sufficient in rice.
The Mahinda Rajapaksa Government succeeded in restoring food security
and self-sufficiency in food for the first time in 100 years after it
was destroyed by the British Imperialists.
Our country is also becoming self-sufficient not only in rice, but
also in sorghum. We have achieved a major victory in sorghum
cultivation. The staple food of people in the North is ulundu over 85
percent of which used to be imported until two years ago.
When we re-started cultivating it in the Vanni, there were no seeds
for distribution among farmers there. Therefore, we imported the seeds
from India and distributed them among farmers.
I am proud to say that farmers in Vanni have today succeeded in
producing all the ulundu this country needs. Furthermore, we are
reaching self-sufficiency in many other crops. President Rajapaksa has
posed a challenge to the Agriculture Ministry and to the farming
community to make the country self-sufficient in all food items it
needs. This Budget has guaranteed to provide all the relief and security
required for achieving that goal.
We have also made a big investment to boost the country's milk
industry. After 26 years we have imported the highest number of dairy
cows and distributed them to farms. The aim is not only to raise the
income level of our dairy farmers by saving the money spent on powdered
milk, but also to make our people healthier.
I wish to say that today 60 percent of Nestle's milk is bought from
farmers in the North, bringing them a good income. Today milk collection
centres have been set up, not only by Milco, but also by private
companies. Our idea is not to bring the milk from villages to Colombo
and sell them in packet form, but to encourage people in milk production
areas to consume it.
In addition to exports, we have taken steps to improve facilities to
store fish for longer periods and also to produce salmon which our
villagers relish.
This Government has made the kitul industry a major foreign exchange
earner. We have taken measures to boost small and medium-scale
industries and develop the sugar-cane industry to meet the requirements
of investors and tourists.
The biggest challenge the country faced this year was the drought.
Our farmers suffered incalculable losses due to the drought which also
seriously affected energy generation.
The breakdown of the coal power plant stopped production. American
sanctions on Iran reduced the supply of oil from Iran to our refinery.
Despite these and other negative factors, we managed our economy well.
This Budget has provided relief to 1.5 million farmers. For
Government employees, 1.3 million has been allocated. There are 500,000
pensioners, one million war heroes, 600,000 parents of war heroes, one
million tea, rubber and coconut smallholders and five million medium and
small-scale entrepreneurs. In addition to these, there are around
100,000 artistes, those who lost jobs in the July 1980 strike, female
entrepreneurs and disabled people.
Accordingly, the total number is 10.9 million. We hope to reduce the
infant mortality rate to two per thousand. The number of deaths of
mothers has come down from 4.45 per 10,000 to 3.11 per 10,000. We hope
to reduce this to 2.3.
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