Budget 2008 targets single digit inflation

Growth to be expedited in all key sectors:

by Lalin Fernandopulle

Deputy Finance Minister Ranjith Siyambalapitiya said a priority in the Government's 10-year development plan is to bring down the inflation rate to a single digit and expedite growth in all key sectors.

The Deputy Minister told the Sunday Observer preparations are under way for the presentation of the 2008 Budget which will be more development oriented and people friendly.

"No one would criticise a Budget that will provide relief and ensure the welfare of the people. It is only petty minded people with sinister motives that will make an issue and I am confident the Government will come up with one of the best Budgets," he said. Siyambalapitiya said preparing a good Budget is an enormous task and it cannot be done like finalising some accounts.

"We have to ensure that all sectors benefit and they are provided the support and assistance to sustain their livelihood and make a decent living", he said.

"We have prepared a mid term development framework to reduce inflation to around 5 percent, create an environment for economic stability and achieve a growth ratio of over 7 percent GDP," he said.

Siyambalapitiya said according to the 2006-2016 development plan there should be a 4.5 percent growth in the agriculture sector, 8-9 percent growth in the industrial sector and 9-10 percent growth in the service sector.

Settling the national issue, eliminating terrorism from the North, developing the Eastern province, dealing with world fuel prices and tackling the cost-of-living will be some of the priorities in the 2008 Budget, the Deputy Minister said.

He said the Budget will also focus on finalising agreements, launching new projects and completing work on the Norochcholai and Upper Kotmale power projects and the Southern Highway during the specified time period.

With regard to the US$ 500 million bond to be raised by the Government, he said it is the usual practice for any government to raise funds from banks but what is important is what the government does with the money.

"The Government will use the money for infrastructure and development activities and it is not moved by the threats of the UNP", he said.

The Ministries will discuss and finalise agreements with institutions incurring expenditure by mid September. The Budget will be presented on November 7.

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