Budget 2017: Pragmatic and long-term plan to develop the economy

Wednesday, 16 November 2016 00:01 - - {{hitsCtrl.values.hits}}

By Jagath Savanadasa

The Business Chamber of Commerce is pleased that the Government has considered introducing well thought out plans that are pragmatic and designed to bring about national development.

This is despite the big gap between revenue and expenditure and the need to service debt.

As a service oriented institution associated with exports and industrial development, we would at the outset commend the proposals covering the tea, rubber and coconut industry, especially the emphasis laid on value addition to tea. Also the role CTC Tea could play in the overall export strategy of tea.

In our pre-budget proposals this chamber has highlighted the need to develop the dairy industry which has considerable potential. In this connection, the idea of dairy development zones is a viable and practical measure. In yet another direction of significant innovation is the proposal to allocate land for large commercial agricultural projects for food crops.

We suggest however considering the importance and potential of spice exports which are affected by the lack of production. In our pre-budget representations we had requested the provision of idle plantation land for this purpose.

On the subject of regulatory changes, we commend the minister’s idea to keep the Registrar General of Companies’ office open throughout the week. This will undoubtedly have a salutary effect on company registrations and help to overcome the delays encountered by organisations seeking incorporation.

The proposed establishment of Exim Bank is yet another step designed to promote exports. The bank will be operating from 2017. This is in line with most progressive nations which have Exim Banks in place.

Our chamber has in the course of two previous representations on the National Budget, highlighted the need to revamp the public sector. Especially in terms of license and approvals for industry and particularly for direct foreign investment. We are glad that the budget proposals have recognised the need to galvanise the public sector to be an active participant in National Growth.

In the proposal for export growth trade facilitation, bilateral economic integration agreements, restructuring of BOI, eradication of exchange control, have been mentioned. We await specific details about these proposals in order to evaluate their impact on exports.

Over and above these proposals, the visionary attention to restructure education and add new tools of growth and technology in education are noteworthy. We agree with the widely held belief that educational reforms are in keeping with global trends for any progressive nation. Given these realities and thinking above political considerations is praiseworthy. All such reforms are part of the social inclusion that is one of the main themes of the budget.

The Minister of Finance should be thanked for introducing a budget full of pragmatism.

(The writer of this article is the Secretary General at the Business Chamber of Commerce)