A fake Budget, say Opposition sceptics:

A turnaround Budget?

by Uditha Kumarasinghe

The Budget session in progress

Ravi Karunanayake www.chatter.lk

This time around the traditional budget debate was punctuated by the ever-increasing demands for change by the Joint Opposition as well as various trade unions, workers and doctors.

The Government demonstrated its democratic stance and accommodated many changes. To the Opposition’s query as to how the extra Rs. 7 billion revenue could be raised, Finance Minister Ravi Karunanayake said “ways and means” need to be found to bridge the deficit. Government MPs said it was its democratic approach which entertained amendments to the maiden budget presented by the National Unity Government.

If some of the budget proposals are changed by President Maithripala Sirisena, then the Budget would be a fake. The islandwide trade union action was a ‘no go’ situation because of the ‘tamed opposition’ and some trade unions who were backing the Yahapalana government.

Deputy Minister of Public Enterprise Development Eran Wickremeratne said the Budget and the debate that followed were in stark contrast to those of the past. Many proposals had been suggested at the Third Reading and were debated as well. The public too were more civic conscious about revenue and expenditure. This was a welcome sign, he said. It is a healthy debate. “To some it might be sound weak but it isn’t,” he said.

Eran Wickremeratne www.chatter.lk

Malik Samarawickrama www.fastnews.lk

Bandula Gunawardena ANCL file photo

Anura Kumara Dissanayake the independent.lk

Gemunu Wijeratne lankaathth.com

Saman Rathnapriya www.dailynews.lk

Earlier, the public were not involved and the Opposition was and the government steered clear. The reason was the all-powerful Executive Presidency and the Finance Ministry were handled by one and the same person - the Executive President.

In last year’s Budget, former President Mahinda Rajapaksa had a budget of about Rs. 10.7 billion. In sharp contrast, President Sirisena’s Budget is just about Rs.3 billion - a difference of Rs.7 billion. This is significant, because social welfare recipients and Samurdhi beneficiaries get Rs.9 billion which is about 30 percent of households in the country. President Sirisena has reduced his expenditure by Rs.7 billion.

The Deputy Minister said the Rajapaksa family controlled nearly 55 to 60 percent of the votes. In such a scenario, members of the Rajapaksa Cabinet couldn’t criticise the Budget. Today, the public could criticise the Budget and the Government is making the changes.

The final vote was taken yesterday, December 19. There will be a reduction in the vehicle emission tax. The granting of permits to MPs, high officials in the civil service and professionals is a good proposal. The budget proposal was to take away permits and financially compensate them.

Only two things can happen - to keep the permit or withdraw it and pay its value in cash. There will be no huge revenue impact regarding the change.However, dealing with cash increases transparency.

UPFA Colombo District parliamentarian Bandula Gunawardena said he has participated in budget debates since 1989, but has never seen a budget amended after the vote. This Budget, he said has turned into a fake. Income, expenditure and the budget deficit were in disarray.

To politicise the budget, distorted figures have been given as expenditure. Expenditure is also a fake. After the Second Reading, amendments were made by Prime Minister Ranil Wickremesinghe. This has led to a change in income and expenditure. More amendments are to be brought at the Third Reading.

Credibility regarding the budget is at stake. Even the IMF has described it an an alarming situation. If this trend continues, the budget deficit would increase by eight percent, while inflation would be around seven percent next year, he said.

The Prime Minister as the Minister for Policy Planning is aware that they have to seek IMF assistance to resolve the balance of payment issue. From the day the Budget was presented, income and expenditure proposals have been amended. On the directive of President Maithripala Sirisena, charges on beer were increased, but the Finance Minister says this would not affect the government’s income. The attempt to increase the vehicle emission test charges up to Rs.5,000 and earn a Rs.12 billion income was thwarted.. Now it is reduced to Rs.1,500. A Rs.10,000 salary increase has been promised, an addition to the basic salary of public servants. This is to be done in three stages with Rs.2,000 added in January.

MP Gunawardena said it was not known whether the Government has assessed the impact on state coffers with the new amendments.

JVP Leader Anura Kumara Dissanayake said photographs of the discussion between the Finance Minister and ministry officials on the sidelines of the Budget were published in newspapers. We also saw extensive discussions with the Cabinet at the Secretariat under the patronage of the President, Prime Minister, Finance Minister and Development Strategies and International Trade Minister Malik Samarawickrama.

The Budget was presented after Cabinet approval. Amendments show the government’s economic strategy is to put the burden on the people and had to be changed due to protests.

At the Committee stage, a proposal should be submitted as to how the government will meet expenditure. Merely because the President, Prime Minister or any other MP utters something in Parliament, the budget need not be amended. It has to be amended at the Committee stage. These hasty amendments show that the government doesn’t have a proper strategy.

Co-Convener of the Government, Semi-Government and Private Sector Trade Unions Collective Saman Rathnapriya said the Budget contained issues affecting the working class. Trade unions had extensive discussions with the Prime Minister for solutions to these issues. Similar amendments have been made to budget proposals and it is nothing new.

The Premier’s decision to make these amendments should be appreciated. It is a democratic move and this never happened during the previous regime, he said.

The Prime Minister agreed to appoint a high profile committee to sort out the pension issue. Rathnapriya said baseless allegations were made by bankrupt trade unions which don’t even have five members. Certain trade unions wanted to topple the government by trade union action. We only want to sort out our problems and not topple the government.

President of the Lanka Private Bus Owners’ Association Gemunu Wijeratne said they would discuss with trade unions regarding their issues. The transport sector should have a new program. After the Third Reading, we will discuss this matter with the Prime Minister to move forward in a pragmatic manner.

Discussions between the government and trade unions have produced a positive response.. The projected revenue of Rs. three billion has been reduced to Rs. one billion due to the reduction in the vehicle emission tax. There are nearly 537,000 buses and cars in the country. But traffic congestion results in an annual loss of Rs.100 billion. Steps should be taken to minimise traffic congestion. The State sector is demanding the pension scheme to continue. We have a large number of state employees unheard of in any part of the world. Efficiency and productivity in the state sector is much to be desired. State employees are making an unreasonable demand which cannot be granted. I oppose that and drew the attention of the Prime Minister. We should think in a realistic manner.

General Secretary of the Ceylon Teachers’ Union Joseph Stalin said they decided to temporarily suspend trade union action. We put forward 12 demands and the Government has assured it would discuss the pension issue. No finality has been reached. If any unfair decision is taken, we would oppose. The government should not resort to decisions detrimental to the working class. Earlier, attempts were made to increase the eight- hour work rule to nine hours. This is against worker ethics. These proposals would affect the rights of the working class.