Budget 2014, a well-planned financial policy framework - Minister Ranjith Siyambalapitiya

By Uditha Kumarasinghe

Telecommunication and Information Technology Minister Ranjith Siyambalapitiya said three main responsibilities entrusted on the Government is addressing issues of security, welfare and development. These issues have been addressed in the recent Budget. The Minister in an interview with the Sunday Observer said the salient feature of the Budget is to reduce the seven percent economic growth and retain the inflation rate between the rate of 5 to 6 percent. Since the two aspects have been dealt with in the Budget, it can be described as a well-planned financial policy framework. Minister Siyambalapitiya said the people look at the Budget from a personnel angle and are concerned only about personnel benefit such as reduction of the prices of consumer goods and pay hikes. But a budget has more significant features than that. In a country such as Sri Lanka, the Government has a responsibility to provide some relief measures to the people. At the same time, the Government has the responsibility to stabilise the economy on a mid and long-term basis.

Excerpts of the interview.

Question: How do you analyse the significant features of the Budget as against the allegations levelled by Opposition parties?

Answer: The Opposition's main allegation regarding the Budget 2014 is about the relief measures. The Budget is not a gift package which is full of relief measures. A Government has a responsibility to present a budget going beyond the objective of providing relief. Budget 2014 is a reflection of the total expenditure made by the Government for 2014 and how that expenditure is going to be covered. If there is a deficit between revenue and expenditure, the Budget has to set out how that deficit is going to be filled whether it is through loans or any other means. People are used to seeing a budget from their personnel angle and are concerned only about personnel benefit, reduction of prices of consumer goods and pay hikes. But a budget has more significant features than that. In a country like Sri Lanka, the Government has a responsibility to provide some relief measures to the people. At the same time, the Government has the responsibility to turn the country's economy to a stable level on a mid and long- term basis.

Three main responsibilities entrusted on the Government is to address the issues of security, welfare and development for the people. This Budget has to a great extent ensured these three main components are met with. The salient feature of the Budget is that attempts have been made to maintain a seven percent economic growth and retain the inflation rate between the range of 5 to 6 percent. Looking at these two aspects, I can describe the Budget as a well- planned financial policy framework.

Q: The Opposition claims that with the newly introduced tax, the prices of essential commodities such as sugar, sprats, canned fish, green gram have been considerably increased. How do you respond to this allegation?

A: If the Opposition claims some taxes have been increased, they should realise that the country’s future is also decided upon by certain taxes. We are an island nation. For example, we consume plenty of canned fish. Therefore if we want to increase the consumption of local fish, taxes have to be imposed. However, some may have a pessimistic view. It is said that any decision taken in economics with honest intention can be viewed or analysed in eight different perspectives. We can’t refrain that. But as a Government if we want to take the country forward, we have to take certain decisions. Once some decisions are taken, it may have a direct impact. I don’t see the Budget as having made any adverse impact and for prices of essential food commodities to escalate.

Q: The Opposition says Budget 2014 is a statistical gimmick which has not met the aspirations of the common man. Your comments?

A: I don’t see any validity of this argument put forward by the Opposition. Because a budget cannot be presented without statistics. I would like to ask the Opposition to look at the transformation taking place in the country since the day of the Mahinda Chinthana program implemented in 2005 up to now. I call the Opposition to ignore these statistics and go on a trip to Anuradhapura. Can’t they see the change in the road network? Now they can also go to Jaffna and witness the development place after the end of the the war against terrorism. This would enable the Opposition to see the massive changes that have taken place in the country under President Mahinda Rajapaksa. I don’t say the Government has fulfilled all expected targets. Whatever the Government that is in power cannot do so.

A budget is formulated mostly on a hypothetical basis and budgetary calculations are speculative. It sets out the Government’s expenditure and revenue to be collected next year. In a country like Sri Lanka the projected Government's revenue may change due to climatic and other global economic trends. All previous budgets presented by the President as the Finance and Planning Minister have helped to make significant changes in the country. If we look at the past, has the Opposition ever appreciated any good move done by the Government?

Under the leadership of President Mahinda Rajapaksa , the Government successfully ended the three decade- old- war against terrorism by taking a great risk. Taking a look at the Hansard will show that the Opposition has not even on a single occasion praised the Government for eradicating terrorism. I don’t think we should rely on such a Opposition.

Q: As a country which upholds democratic values since independence, how do you see the boycott of the 2014 Budget speech by the main Opposition?

A: I see it as a grave mistake made by the Opposition. The main Opposition UNP should apologise from the people who voted them. Because Parliament is the epitome of democracy. The management of public finance is the most crucial power vested in Parliament. If a budget is not passed in Parliament, it is considered as the defeat of that Government in power.

When the Head of the State presents the budget, the Opposition has a bounden duty to give a hearing to the budget speech.

Because on the following day, the Opposition commences the Budget debate. When the UNP shirks its responsibility means that they are ignoring the democratic process. I see this as a grave mistake and the Opposition should apologise to the people.

Q: Do you think that holding CHOGM 2013 in Sri Lanka has enabled to counter allegations levelled against the Government by certain Western countries?

A: Certainly, the President succeeded another challenge by hosting CHOGM 2013 in Sri Lanka. It's just four years ater the end of the war against terrorism. Amidst various international challenges faced by the Government, one third of the World Leaders and foreign dignitaries participated in CHOGM 2013. In addition, our President was elected to chair of the Commonwealth. This is yet another significant victory achieved by the nation. I don’t say this because I am a Minister. If we look at this with an open mind, I should say that we have realized our objectives. This was a good investment which would pave the way to achieve any long -term benefits.

Q: British Prime Minister David Cameron has virtually challenged the Sri Lankan Government that he would pursue an international inquiry over alleged human rights violations supposed to have been committed at the latter stages of the humanitarian operation unless a credible investigation is carried out by the Government before March 2014. Do you think that they have a legitimate right to make such a strong statement?

A: The British Prime Minister has no right to make such a statement on a sovereign country like Sri Lanka. We are an independent nation. When we were sorting out our internal matters, the Government tried its best to safeguard the rights of everybody. Most of the foreign countries had expressed their displeasure over the statement made by the British Premier. That is why when President Mahinda Rajapaksa addressed the CHOGM press briefing he said “People living in glasshouses should not throw stones at others”. Some Western countries that talk about human rights have committed to grave human rights violations in countries like Libya, Afghanistan and Syria. There are attempts being made by certain Western countries to interfere into our internal matters and destabilize the country. Some of these foreign countries have their internal political issues such as facing future elections. If powerful countries act in an exemplary manner, then it would be set a good example for the other countries.

Q: How do you view the development that took place with the Channel 4 episode?

A: This is a testimony given to the world on the transparency of the President and his Government. Certain sections criticise the move taken by the Government to provide visas to Channel 4 journalists to visit Sri Lanka. By doing so, the intention of the Government was to show transparency to the world because it didn't have anything to hide. That is why the Government allowed Channel 4 journalists to visit Sri Lanka and see for themselves the exact situation in the country. This also provided a good opportunity to the people and the world to see the true nature of the UNP and how they attempt to realise their narrow political objectives. I see this as another victory achieved by the Government.

Q: Has the Government decided to go for a snap election in 2014 as stated by some media institutions at press briefings conducted by certain political parties?

A: According to the Constitution, the Government has some more time to hold an election. The Government has not taken any such decision. I don't see the Government having a necessity to go for a snap election at this juncture. It is up to the President to decide on the dates of elections.

Q:What have you got to say over the intransigent attitude demonstrated by the main Opposition UNP and some other parties by not taking part in the Parliamentary Select Committee (PSC) discourse to arrive at a consensus on the national question?

A: Its like the UNP and other opposition parties that have shirked their responsibilities. We are working under a parliamentary system. The PSC is an ideal forum to sort out critical issues in the parliamentary system. If political parties boycott the PSC, there is no use to appoint select committees. Under the provisions of the Constitution, select committees have been introduced to find solutions to issues of national importance. We are members of that Parliament. If some political parties deliberately ignore the PSC, its an attempt to undermine the supremacy of the legislature. Otherwise new methodology should be formulated as an alternative to these select committees by vesting powers even to courts to sort out such issues.