Economy in the doldrums - Anura

By Uditha Kumarasinghe

The JVP Parliamentarians have been very critical of the financial policies of the current government, and chose the No Confidence Motion against Ravi Karunanayake fielded by the UPFA rebel group to drive home this message.

JVP Leader Anura Kumara Dissanayake, speaking to the Sunday Observer highlighted the need for a voice to be raised against the Government’s economic policy. According to him the move to support the no confidence motion was part of that struggle. JVP, as a main contributor to the landmark Presidential elections victory, believes the government should face this crisis as it acts against the mandate gained on Janaury 8, 2015, Dissanayake said. Following are the excerpts of the interview.

Q: Why did you vote for the No Confidence Motion?

A: If the No Confidence Motion (NCM) targeted the Finance Minister, it means it has seriously questioned the entire economic policy of the Government. We decided to extend our support to the NCM due to the pressure caused to the people by the Government’s economic policy.

Q: If the vote on the NCM succeeded, the portfolio of the Finance Ministry would have been in crisis and greatly weakened the Good Governance which you also originally supported. Do you think the Good Governance concept has collapsed right now?

A: Firstly, we have to understand how the incumbent government came to power. It was not by organizing the party, its leader becoming an attractive political figure or rallying the people round the party. This is a government formed by the people with lots of sacrifices, to usher in a new era. Therefore, the Government has a prime responsibility to fulfil the needs of the people, unlike other previous governments. At present, the Government has failed to address this issue. Therefore, a voice should be raised against the Government’s economic policy in and outside Parliament. We represented a part of that struggle in Parliament by voting for the NCM. We don’t believe the mere change of the present Finance Minister would be a solution to the crisis. The future of this Government is entirely based on its own strategies. The Government should face this crisis as it acts completely against the mandate gained on January 8.

Q: If you don’t agree with the policies of the current Finance Minister, what are the JVP’s alternative policies to increase the revenue and repay the huge debt burden, before the economy becomes further weakened?

A: We believe the economy has faced a five-fold disaster. One is the debt burden. There is no escape from the debt burden unless the Government takes steps to minimize waste, end corruption and make optimum use of loans for development. Second, the import and export crisis. Third, the large deficit in state revenue collection. Fourth,, production is in the doldrums. Finally, the non distribution of income fairly among the people. Therefore, the Government’s tax policy should focus on minimizing the gap in income distribution. The present tax policy has been designed to protect those in the high income brackets and place a greater tax burden on the masses.

Q: From now onwards, will the JVP follow a policy of going against the Government or will it extend support to the progressive moves?

A: Now, we are actually protesting against the Government’s political and economic policies. Our struggle is for a Government which would not implement this kind of faulty economic policies. Despite the change of Governments and political leaders from time to time, the country is in a quagmire. Hence, the need for an alternative policy framework.

Q: Is it fair to burden the people with more taxes to recover the loss on the huge debt incurred by the previous regime?

A: Not at all. Before assuming office, the Government should have known about the Sword of Damocles hanging over its head. It is not fair at all to make the debt issue as the one and only tactic for the Government’s survival. It is very unfair to pass the debt burden on to the people. People have no role whatsoever in raising or repaying these loans. A colossal amount of money has frittered away due to investments in unproductive areas which have failed to bring any tangible benefits to the people. Large scale frauds and malpractices have been committed in obtaining such loans. The Government should take over the properties of those who committed such malpractices and take stringent measures to prevent waste. On the contrary, the Government has given protection to the fraudsters.

Q: How do you look at the initiative taken by the Government to increase VAT and vehicle taxes?

A: The Government has lost its income avenues. Its only income avenue is to put more and more tax burden on the people. Already, increased taxes have been imposed on food commodities, three wheelers and the telecommunication sector. This is clear proof that the Government doesn’t have a systematic economic plan. Following the 2016 Budget, various taxes were introduced. It is a clear testimony to the fact that the Government is unable to prepare a budget for a particular financial year.

Q: Do you think the Yahapalana Government should be changed, or allow it to rectify the shortcomings and run the country?

A: There are some shortcomings which can be rectified, others not. Fraud, waste and misappropriation of public funds are an integral part of their methodology. The need of the hour is for a strong political movement to act in the larger interests of the masses.

Q: Do you see any fruitful purpose in investigating the large scale frauds and waste?

A: It has failed to produce any result at all. Instructions have been given to the FCID to complete the files of certain investigations. This Government is covering up those investigations, especially the investigations on the former regime. They defend their chums and also launch a political witch hunt against those who oppose them. The Government has politicized the issue of bringing the culprits to book.