Tuesday Apr 30, 2024
Tuesday Apr 30, 2024
Wednesday, 6 March 2019 00:00 - - {{hitsCtrl.values.hits}}
By Ashwin Hemmathagama and Nuwan Senarathna
Parliamentarians yesterday expressed mixed sentiments on the Budget 2019 presented by Finance Minister Mangala Samaraweera with some calling it a burden on the people, while others approaching the proposals with cautious optimism.
Minister of Finance Mangala Samaraweera was happy to have a second chance, after the tumultuous end to 2018, to move the Budget 2019 with a positive note, witnessing an up-swing in growth despite the adverse effects of the last year’s oil prices and constitutional crisis, US Federal Reserve’s rising interest rates that forced more investors to leave the continent in search of high returns, poor credit ratings, and loosing much anticipated tourist arrivals during the peak.
According to Samaraweera, the empowerment of citizens has been a fundamental objective of the Government where this year’s Budget, “Enterprise Sri Lanka -Empowering the People and Nurturing the Poor” is about creating a nation enriched by extending a helping hand for Sri Lankans to help themselves, while protecting and nurturing the poor and the weak, with a strong well-targeted social safety net.
United People’s Freedom Alliance (UPFA) MP Vasudeva Nanayakkara believes the Budget 2019 is aimed at elections even though no announcements are made. Accepting the Budget 2019 is a populist budget, he had doubts about implementing all what was proposed during a short period of eight months. “This is a budget that aims the election. Some of the benefits will come into place by November, which is aligned with the Presidential Election. We should see how best the Government could implement the promised benefits despite increases of Government revenue,” said Nanayakkara.
UPFA strongman MP Anura Priyadharshana Yapa accepted the fact the Budget proposals are good but will be hard to realise unless the Government takes special action to settle debt. “It is more like a sugar-coated bitter pill. Tax base is also broadened,” he said.
He noted debt repayment would be the biggest challenge for the Government in this year. According to Yapa, the Government would have to pay $5.9 billion as debt repayment in 2019.
The depreciation of the rupee would also create more challenges for the Government, he said.
“Due to the depreciation of the rupee, the amount of debt repayment is equivalent to Rs. 1008 billion. That amount is twice the amount that the Government has taken to complete the Hambantota Harbour,” he added.
He noted the debt repayment could put unnecessary pressure on the foreign exchange reserves due to the debt repayment adding that the Government might have to implement a project to increase dollar income to ease the pressure on the foreign exchange reserves.
Predicting that more taxes to be slapped on the public to finance the expenses under new proposals in the Budget, Yapa said that the year would be one of the most difficult years for the people despite the introductions of various concession due to debt repayment.
“I don’t think the Government has enough money to fulfil those promises. The entire income of the Government is just enough to pay the debt as well as pay for the salaries of the Government employees.”
Yapa claimed the Government might have to rely on loan facilities to finance the increments, adding that the International Monitory Fund (IMF) would play a bigger role in the coming months as the Government has to meet conditions imposed by the institution.
Opposition lawmaker Keheliya Rambukwella drew parallels between the pervious budget proposals and the Budget 2019, comparing the action plans and what was delivered after 365 days. “In the previous budgets there were promises to offer fertiliser for Rs.350/-. But very few such promises made a difference. It is a very attractive piece of paper. We need to see implementation,” said UPFA MP Rambukewella.
Opposition leader Mahinda Rajapaksa noted that the Budget 2019 has neglected agriculture and ignored a number of departments in the military, giving a small allowance only to the Commandos.
Calling the Budget a burden on the people, Rajapaksa said that people will only realise the gravity of the situation when the proposals are implemented.
A controversial politician within the UPFA who represents the Sri Lanka Freedom Party, Kumara Welgama accepted the Budget 2019 to have addressed the needs of the country. “Actually, the Budget has touched all sectors. Generally, we don’t find any issues with what is proposed. But we have doubts about implementing the proposals without printing money. Government lacks money to deliver those promises,” he said.
UPFA Duminda Dissanayake who is represents the Sri Lanka Freedom Party said: “Well, the Budget sounds good. It has offered benefits to the public. Our party is yet to reach a collective decision to face the Budget debate. We are not sure if it is an election Budget or a Budget that is not deliverable.”
However, Opposition lawmaker Dayasiri Jayasekara wanted the rural economy to be given a boost if the Budget 2019 is to help the country at large. “It is true that there is a cash shortage among the rural Sri Lankans. The rural economy has collapsed. Bringing in a budget proposal alone will not help to uplift the fallen economy. There were money circulation issues in the past and it was felt at the grassroots,” he said.
UPFA MP Mahinda Amaraweera said: “The Government could have done better for the fisheries sector development. Many in southern Sri Lanka were looking forward to the Nilawala Development Program taking off. We don’t believe there are any efforts to defeat the allocations made to the President’s Office.”
Last year, with the European Union opening its markets to Sri Lanka’s fisheries products, the total sea food exports to EU alone has increased by 14% to $290 million.
Meanwhile, the UNP lawmakers wanted the Government to do better for many sectors and deliver the promises offered in Budget 2019 within the year. UNP MP Vasantha Senanayake has expected more proposals for the country. “Most of the proposals are better and some could be further improved. People will respond positively if these promises are delivered,” he said opening the door for the Government to move changes during the next four weeks.
Non-Cabinet Minister of Economic Reforms and Public Distribution Dr. Harsha de Silva said: “This is a very good Budget. The Minister has presented it having taken all segments in our society into consideration. The younger generation has received many benefits. For example the youngsters could finish schooling and obtain a loan up to Rs. 1.1 million for a 0% interest rate to pursue higher education rather waiting to enter the State universities. Not only that, the newly wedded can solve their housing issues.”
Minister of Power, Energy and Business Development Ravi Karunanayake said the Budget has addressed all sectors and should spent wisely on the projects. “I think it is important to say that capital expenses are wisely spent. This will be a good Budget if we can find money to meet the proposals,” he said.
Minister of Highways & Road Development and Petroleum Resources Development Kabir Hashim praising the Minister of Finance for bringing a balanced Budget said: “Sometime back, the United National Party followed the open economy. But now we have changed it to include the socio-market economy. No matter how hard we engage in development it is necessary to establish a safety net for the common man. So, the Budget has widened the Samurdhi to include 600,000 more recipients, increasing the allowances of State employees and pensioners.”
Non-Cabinet Minister of Science, Technology & Research Sujeewa Senasinghe said: “It is a Budget that aims at development that eyes increasing the production and exports. Several sectors are offered incentives.”
Minister of Agriculture, Rural Economic Affairs, Livestock Development, Irrigation and Fisheries & Aquatic Resources Development P. Harrison stated the Government has looked into the welfare of the military and police in the current Budget.
However, UNP MP Harshana Rajakaruna had doubts about being able to deliver all that is promised within a short period. “We have a very limited time to make all these promises a reality. It is a difficult task,” said the UNP backbencher.
Minister of Lands and Parliamentary Reforms and Chief Government Whip Gayantha Karunatileka assured the nation the Government will continue the Gaperaliya program from Budget 2019 despite Opposition criticism.
Last but not the least, UNP MP Field Marshal Sarath Fonseka blamed the Opposition for failing to understand the reality that no legitimate government could be changed out unconstitutionally. “The Opposition will never accept reality. With them violating the constitution in October, we were unable to complete most of the development programs as expected. We expect to move forward with the things which were lagging behind,” said the Field Marshal. (AH)
