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Wednesday, 2 December 2015 00:51 - - {{hitsCtrl.values.hits}}
By Ashwin Hemmathagama – 
Our Lobby Correspondent
Prime Minister Ranil Wickremesinghe yesterday staunchly defended his Government’s maiden budget, urging Parliamentarians on both sides of the aisle to think out of the box and put aside traditional political rivalries to back the appropriation bill for 2016.
The Budget for 2016 presented by Finance Minister Ravi Karunanayake late last month has come in for both bouquets and brickbats, giving rise to a strong debate over the Government’s fiscal proposals in the country. The Budget has been criticised for the cancellation of vehicle permit entitlements for both parliamentarians and public servants, revising fertiliser subsidies and school uniforms distribution, increasing emission test charges, and providing foreigners easy access to hold local lands.
But Prime Minister Wickremesinghe who addressed Parliament yesterday, said the criticisms were lacking in substance, and in most cases were not valid.
“Some said there was no taste at all in this budget. Others held the budget would destroy the economy and sell the country to foreigners. Certain members were unhappy to be in the Cabinet and decided to criticise the budget. All these are traditional political slogans that have been used for years and years. You are standing against this budget for no good reason. Maybe it is to raise objection or to fulfil a political party’s requirements. I urge you to shun politics as usual and take a more positive view of things,” urged PM Wickeremesinghe.
The Premier specifically raised issues pertaining to budget proposals regarding the Employees Provident Fund (EPF) and the Employees Trust Funds (ETF). He assured Parliament that both funds would no longer be at the mercy of political parties or arbitrary decision making by policy makers.
“Both funds were subjected to theft during Rajapakse regime. Those who stood against those policies and publicly demonstrated got shot. That how Roshen Chanaka died in the Free Trade Zone protests,” Wickremesinghe recalled.
He said that the trade unions were justified in their fears that the funds would be gambled with and lost. “I have met the trade union leaders and labour leaders. We are trying to fortify the funds in many ways. One plan is to bring in new regulations limiting the options to reinvest the moneys of the funds,” he explained.
The Prime Minister recalled that during the previous Government the directors of the funds had been appointed to meet Government agendas for the pension funds.
“If you take the Malaysian EPF Act, the Directors are the trustees of their fund and there are rules and regulations to follow. We are looking at restructuring both funds at the time of restructuring the Central Bank. The Monetary Board will have authority to intervene in the decisions of these Directors and the Parliament is above the Monetary Board,” he explained.
The Premier said that trade union leaders had wanted the Government to keep the two funds separate and the administration to be with Central Bank.
“We will discuss this further. We take decisions after discussions, which was not there before during the previous regime,” said the Prime Minister who assured the pension schemes will continue. However those who will become employed from next year will not be entitled to the schemes.
Striking a conciliatory note Premier Wickremesinghe hailed the Tamil National Alliance and the JVP for playing the role of opposition in Parliament. “They have set the stage for a new political culture, underscoring the values of accountability and good governance,” he said.
Wickremesinghe promised that more select committees will be established to monitor public money and 16 different subjects, in addition to the current oversight committees, CoPE and PAC. Ordinary Members of Parliament will be chairing those oversight bodies, the Premier added.
“We will involve all MPs in this governing process. As promised in the political manifestos the National Accounting Act will soon be presented in the Parliament. We have already made provisions to increase female representation over 25% in the local government elections. Right to Information Act will be presented to Parliament next year,” he pledged.
Most importantly, the Prime Minister said, Parliament will be transformed into a constituent assembly to draft a constitution suitable to the new Sri Lanka.
He said that 15.2% of GDP was earned from taxes. By 2014 it had reduced to 10%. “State coffers no longer received income but family members and their “mango friends” enjoyed it. 43% of Sri Lankans earn less than US$2 per day. We need to change this and to pass the benefit to all,” the Prime Minister insisted.
Wickremesinghe charged that the No Confidence Motion against the Finance Minister had been handed over by MPs with no knowledge of the Constitution.
“The Government will get dissolved as per Article 48 (1) of our constitution anyway if the Budget fails at Parliament. It is clear that they lack knowledge on Constitution,” he said.
Staunchly defending his Finance Minister’s proposals, Wickremesinghe said that this budget would alleviate the living conditions of the country’s poorest people.
“We have delivered reliefs as promised in the 100-day budget. We plan to reduce the budget deficit to 3.5% by 2020 from the current level of 5.5% - 5.9%. For this we will have to revise the outdated tax system. To prepare a new tax system suitable for Sri Lanka, we will invite the International Monetary Fund,” he said.
The Premier said that in 1994 a decision had been made to digitalise Sri Lanka Customs. “But till I became the Prime Minister in 2001 this was not executed and even at 2015. We need to decide between political gains and national development. Another economic crisis is expected in 2016. Sri Lanka will also experience hardships if ISIS activities upset the Middle East.
Given the looming turbulent global economic environment in 2016, and its challenges to Sri Lanka, the Government has decided on many measures to safeguard Sri Lanka from external shocks.
Prime Minister said one measure is the decision to discuss a Stand-By facility from the IMF. This he said will ensure no undue burden is placed on the ordinary man due to external shocks. “As a country we need to prepare ourselves as to how to face the challenging global environment,” the Premier said.
Wickremesinghe said that according to the World Bank, a developed country will be considered based on the GDP per capita exceeding US 12,500. Malaysia will soon reach this level. China in 2026, Thailand in 2032, Indonesia in 2042, Philippines in 2051, Vietnam in 2056, and India in 2059 are expected cross this level, he said.
“If we increase our economic development to 8% Sri Lanka can reach this limit by 2032. Neither the UNP nor the President Maithripala Sirisena has personal agendas. We all give priority to the country. UNP members have been ill-treated for over 20 years. But we are unable to treat them exclusively. All Sri Lankans will be treated equally,” he added.
