Opposition and Government MPs’ take on Budget 2012

UNP Co-Deputy Leader Karu Jayasuriya

The Budget lacks direction and is neither here or there. For the consumer, it is inflationary; nor does it instil investor confidence. It has a political aim but lacks an economic aim. Furthermore, it does not address the productivity of employment; nor does it address the salaries of professionals and high management.

UNP Chief Economist and MP Dr. Harsha de Silva

With this Budget, overall, I feel that the Government is missing the bus. There is a 10% salary increase for the public sector and then there is 7% inflation and 3% rupee devaluation. All that the private sector workers will feel is the 7% and 3%, which is a 10% reduction. Now who has to eat their words? In particular, this master strategist at the Central Bank has to eat his words.

You can’t hold both interest rates and exchange rates. They must understand that this is based on theories, whether they like it or not. Fundamental equations cannot be violated. You cannot override economics for the sake of a political appointee at the Central Bank.

The President said nationalisation was going to be one-off and today he said they are going to take over 37,000 acres of underutilised lands of plantation companies. How is that going to promote investor confidence?

The Government is attempting to make it look like a nationalistic, domestic enterprise oriented, import substitution type of budget. There are some good things in terms of trying to incentive entrepreneurs and local manufacturers and all that, which I think will have some positive impact.

By doing things that are going to further erode investor confidence, where are they going to get the investor funds to bring 8-10% growth? Where will that come from? The big problem is debt repayment. If investments don’t come in, debt is only going to rise, which is going to be a problem.



JVP Parliamentarian Vijitha Herath

This is yet another numbers gimmick by the bankrupt Rajapaksa administration.

People in this country hoped that the Government would provide some kind of relief through this Budget to ease the sky-rocketing cost of living. But once again they have failed to provide any relief to the people in the State sector.

There was a fuel price hike before the Budget. Soon the electricity tariff and bus fares will be increased. State sector workers demanded a Rs. 10,000 salary increase, but all this Government offered was a 10% allowance. This is a sad situation. Although they have failed to provide any benefits, this Government has burdened the already-suffering people in this country with Rs. 1.1 trillion worth of borrowings.

They say it is a development Budget, but how can they call it so when the Government has failed to offer any relieves to the unemployed youth? This is why we say it is just another numbers gimmick by this Government.

Power and Energy Minister Champika Ranawaka

Today’s Budget is balanced and fair, catering to all social and economic communities. The 100 relief measures taken are praiseworthy, which will no doubt greatly assist in achieving the goal of making Sri Lanka the ‘Wonder of Asia’. It is also a Budget that has allocated funds for realising the dream of ‘electricity for all by 2012’.

Justice Minister Rauff Hakeem

In my opinion, the Budget is based on sound economic principles. Taking into consideration the trend of the world economy, with the recession looming all over, it is based on very sound macroeconomic policies and we also feel that it is going to boost investment, not forgetting public welfare. Overall it is a fine launching pad to take the country forward on fast-track development and in the meantime not forgetting the need for the necessary safety net for the weaker section of the population.

Leader of the House and Minister of Irrigation and Water Resource Management Nimal Siripala De Silva

Despite the global economic recession, President Mahinda Rajapaksa has forwarded a development Budget coupled with several forms of relief to the public servants and people of this country, especially the Samurdhi recipients. I consider it as a unique Budget this year, which should satisfy the aspirations of the people in the short-term as well as the long-term.