Budget 2014 will strengthen key economic sectors

President Mahinda Rajapaksa in the people-friendly Budget 2014 in Parliament on Thursday presented fresh proposals based on a farsighted vision to raise the people's socio-economic conditions in every segment of society and expedite the country's on-going development drive.

This was a significant gesture on the part of the President to present the Government's ninth consecutive Budget in Parliament as the first Sri Lankan Leader elected to the Commonwealth chair.

The Budget highlighted the Government's sincere commitment to strengthen free education, health and agriculture sectors. The President told Parliament that Sri Lanka anticipates over 7.5 or 8 percent economic growth in the next three years. Some of the people-friendly proposals in the Budget included the increase in the cost-of-living allowance for public servants, a new farmer pension scheme and interest-free loans for women entrepreneurs.

He also told the House that the government has formulated new laws to protect land resources from outright transfers to foreign ownership so that foreigners will only be allowed to have access to state and private lands in Sri Lanka only through long-term lease agreements.

If one were to look at most proposals in Budget 2014, it could be seen that it is development-oriented and SME-friendly and paves the way to take the country forward to achieve its ultimate goal of being the 'Wonder of Asia'. Therefore, Budget 2014 has been presented with key focus to further boost infrastructure facilities through various development projects implemented. In addition, a series of proposals have been included in the Budget to stimulate growth and attract Foreign Direct Investments to the country while providing relief measures to the vulnerable segments of the population.

Another notable feature was the main Opposition UNP's boycott of the Budget Speech by shirking the legitimate role of a responsible Opposition.

The seats of the DNA members were also vacant when the President presented the Budget. However, the TNA members were present in the chamber. Amidst the applause by Government legislators, President Rajapaksa commenced his Budget speech. Some Government Ministers who aired their views to the media on Budget 2014 were very critical on the manner in which the main Opposition boycotted the Budget speech.

President Rajapaksa at the commencement of his Budget Speech also told the House about the significant achievements gained by the country as a result of hosting CHOGM 2013 in Sri Lanka. He outlined the main economic benefits Sri Lanka had gained from this summit to attract new investment opportunities from Commonwealth countries and global markets. By hosting this summit after 20 years in an Asian country, Sri Lanka brought pride to the whole of Asia and attracted global attention to the country as one of the leading economies in emerging Asia.

The President said that the successful conclusion of the summit with transfer of the Commonwealth chair to Sri Lanka was a clear reflection of the international recognition of the Government's foreign policy. The President said we ought to be proud that we restored the prestige of our motherland by mobilising 53 countries and giving them an opportunity to see for themselves the turnaround we have made. The President also asserted that the conference also provided ample opportunities to the leaders to witness Sri Lanka's economic progress and the stable democracy that prevails, which would convince them that the fabricated viewpoints being aired by certain sections are grossly unfair.

A mapila which was found on Thursday in a flower pot in the Opposition Leader's office in Parliament also turned into a hot topic during the second reading of the Budget debate due to various views being expressed by the Government and Opposition members. The reptile which was about one and a half feet long had been captured later and handed over to Wildlife Department officials. Speaker Chamal Rajapaksa with Secretary General of Parliament Dhammika Dassanayke, Deputy Sergeant-at-Arms and other officials visited the site where the reptile was found and pledged to conduct an investigation on this incident.

UNP parliamentarian Harin Fernando who joined the Budget debate also drew the attention of the House as to how this snake had gone to the third floor of the Parliamentary complex. He queried in lighter vein whether the mapila had taken the Parliament lift?

The following day Opposition Leader Ranil Wickremesinghe in the second reading of the Budget speech described Budget 2014 as a damp squib which is full of rhetoric, and lacked any tangible initiatives to address the crisis confronting the country's economy. Wickremesinghe said if there are 101 sections in the budget proposals, none of them had given concessions to the people. He said the Budget has not introduced any strategy to bring down the cost-of-living.

The Government has not increased the salaries of state sector employees. Instead, it has proposed to give a bicycle to each field officer working in agriculture, livestock, irrigation, wildlife and health sectors. This bicycle would also be given to them through a leasing facility. But at the same time those who exploit this country are given tariff concessions and tax exemptions to import luxury cars such as Lamborghini and Ferrari. Budget 2014 was similar to the previous one and it has failed to give any relief to the people.

Senior Minister for International Monetary Cooperation and Deputy Finance and Planning Minister Dr. Sarath Amunugama who responded to the Opposition Leader's remarks explained to the House with statistics in the Fiscal Management Report how Sri Lanka has achieved a rapid growth rate over the past few years.

He said economic growth which is projected at 7.3 percent in 2013, is expected to grow to 7.5 percent in 2014. Dr. Amunugama said this is a commendable achievement compared to many other countries in the region.

He told the House that despite numerous global challenges, Sri Lanka is progressing fast. At present, the people reject the Opposition. The Opposition Leader has not studied the budgetary proposals. Budget 2014 was presented on the theme 'Development, participation and equity.' It was formulated in consultation with various segments of the society and their views had made an effective contribution to the Budget.

Minister Amunugama said that our agriculture had reached a level where we could sell our excess paddy production to the World Food Program. But the Opposition did not refer to these positive developments. The Government has contained inflation at 6 percent. The Governments hopes to reduce the Budget deficit to 3 percent within the next two to three years. Sri Lanka has reached the level of a middle income earning country.

The Opposition members who joined the budget debate highlighted that Budget 2014 does not contain any statistics on the expenditure on CHOGM 2013. However, the Government on Friday presented a supplementary estimate to the tune of Rs. 1,089,819,500 for Parliamentary approval to cover expenses incurred by several Departments and Ministries for CHOGM 2013.

The supplementary estimate was presented to the House by Chief Government Whip and Water Supply and Drainage Minister Dinesh Gunawardena. The Defence and Urban Development, Mass Media and Information and External Affairs Ministries have sought supplementary allocations to cover the expenses on CHOGM which include the purchase of vehicles, machinery and equipment and public awareness campaigns.