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| Sunday, 20 June 2004 |
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| News Business Features Editorial
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Cabinet decisions: Government investment Finance Minister Dr. Sarath Amunugama said that the policy of the UPFA govenment is increasing government expenditure as well as revenue and not reducing Government expenditure as practiced by the previous regime. "We should reduce the gap between income and expenditure, not by reducing essential capital and recurrent expenditure but by increasing revenue. The Government has expressed this view to World Bank and IMF representatives and they also agreed." Minister said at the cabinet press brieffing held on Thursday (17). Government investment is essential in achieving economic growth. During the past two years government investment has reduced from 14% to 5% of the GDP. Government revenue will be increased by improving the efficency of tax collection. However, govenment has decided to stop the implimentation of the proposed Revenue Authority. Instead, the Government will strive to increase the efficiency of Inland Revenue, Customs and Excise departments. The lowest tax collection in Sri Lankan history is recorded during the past UNF regime due to inefficiency in tax collection, Minister Amunugama accused the UNF of waiving off tax for the benefit of political supporters and granting tax amnesties. ####### Export of discarded metals stalled Cabinet has decided to stop the export of discarded metals. The collected metals will be given as raw material to local industries. Cabinet has approved the paper presented by Minister of Rural Industries K.D. Lalkantha. The Industrial Development Board (IDB) will purchase the discarded copper, aluminum and brass from CTB, CGR, CEB, Security forces and other bulk suppliers and smallscale collectors and provide them at reasonable prices to industries. Traditional local industries, small industries and some largescale producers used these as the source of raw material. These industries faced a crisis due to the export of these metals. ###### Tax on land Govt. re-enforces 100% tax on land purchase by foreigners. The law was ammended to remove the tax by the previous government As a result lands and buildings with historical and commercial value are occupied by foreigners. Cabinet has also decided to stop the handing over thousands of hectares of land to foreign agro companies as agreed by the previous government which had scheduled the handing over of thousands of hectares of land in Tantirimale to a Nordic company and thousands of hectares in Trincomalee and Hambantota Districts to the German Agrico company. Minister Amunugama emphasised that this decision would not affect land purchase of foreign investors and any question will not arrise with legitimate land purchases by foreigners. The commitee appointed by the Lands ministry will inquire into illegal land transactions and bring in ammendments to the existing parlimentary act. Compansation formula will be suspended and it will be revised after discussions with trade unions. ###### Water Resource Management bill Cabinet has decided to scrap the proposed Water Resources Management bill and protect water rights of farmers and others. Government will bring a water management bill to scientifically manage scarce water resources and not privatise water. ###### Employment * Permenent jobs with a two year training period will be provided to all unemployed graduates. A monthly salary of Rs.6000.00 will be paid during the training period. The government has a role to play in the economic development and therefore an efficient government sector is essential. |
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