Govt. loses Parliament vote over Ravi’s resolution

Wednesday, 8 April 2015 01:31 - - {{hitsCtrl.values.hits}}

Motion to raise threshold of Treasury Bill issuance by 47% to Rs. 1.25 trillion defeated by 21 votes
Opposition especially former President Rajapaksa supportive group rejoice

By Ashwin Hemmathagama Our Lobby Correspondent A resolution to raise Rs. 400 billion through the issuance of Treasury Bonds was shot down yesterday in Parliament with 52 lawmakers voting against it and 31 for it. The outcome also exposes the dire status of public representation with only a mere 83 out of 225 legislators were present at the time of the vote. Minister of Finance Ravi Karunanayake moved the resolution under the Local Treasury Bills Ordinance to gain approval for a sum not exceeding Rs.400 billion to be borrowed. “There were seven Governments in power since independence. Until Mahinda Rajapaksa took over total borrowing was at Rs. 250 billion. He increased this significantly. By 2015 January there were no tenders called and the total debt stands at Rs.670 billion. We have shown progress during the past 82 days. We need to increase borrowing from Rs. 850 billion to Rs. 1,250 billion simply because the budget deficit of Rs. 520 billion. We have brought many benefits to Sri Lankans during the past few weeks. Yes, we know that you are concerned about being unable to make money from illegal activities. This money will be borrowed not to be spent lavishly but to shoulder the benefits given to the masses,” explained Minister Karunanayake who said financial mismanagement was five times greater than total borrowing during the Rajapaksa regime. “This is a ploy to print money,” the opposition leader, Nimal Siripala, told the parliament before the vote. “This will increase the money circulation temporarily, but it’s not good for the economy.” Opposition lawmaker Ajith Kumara said: “The new Government pledged to pass more authority to Parliament as part of its 100-day program. None of the consultative committees have met for a long time. The proposed issuance of Rs. 400 billion local bonds too should have been discussed first by the committee.” MP Bandula Gunawardena stated: “According to Article 148 of Constitution, Parliament holds responsibility for funds. This will exceed the total borrowing limit assigned to a Government. Since independence, we were limited to borrow Rs. 850 billion. But this issue will force us to print more money and to use wheelbarrows to carry money in the days to come.” According to the Central Bank there has been a considerable increase in local borrowing by the Government since January 2015. It was also reported that Government spending has increased and its revenue has decreased due to Government employees’ pay hike and the slashing of essential items and fuel prices introduced through the Interim Budget. Hence, while the Government is keen on issuing Treasury Bills and Bonds locally and raising loans to meet its expenditure, Treasury Bills and Bonds issued locally within the first three months of this year, rising to some Rs. 216 billion, has been a significant feature. Meanwhile, the Government has raised a loan of nearly Rs. 70 billion during the first three months of this year through the issuance of Sri Lanka Development Bonds. Analysts point out that the Government’s monetary situation is under pressure since its plans to raise $1.5 billion through the issuance of international bonds has been delayed.

Dinesh insists Govt. must resign

The Opposition yesterday demanded the resignation of the Government after it lost the vote on the Treasury Bills Ordinance. Mahajana Eksath Peramuna (MEP) leader Dinesh Gunawardena said that it is an accepted norm for a Government to resign if it loses a vote in Parliament. A proposal by the Government to amend the local Treasury Bills Ordinance to lift the borrowing ceiling by 400 billion rupees was defeated during a vote in Parliament today. The proposed regulation got 31 votes for and 52 against it. This is the first vote which went against the Government in Parliament since it came to power after the January 8 Presidential elections. (Colombo Gazette)

UPFA minority parties blame Govt. for irresponsible economic, financial policies

The United People’s Freedom Alliance (UPFA) minority parties yesterday, commenting on the Government’s move to seek permission to issue Rs. 400 worth of Treasury Bills to pay the salaries of Government workers, indicated that this showed its irresponsible economic and financial policies. UPFA Parliamentarian and Democratic Left Front Leader Vasudeva Nanayakkara yesterday pointed out at a media conference that this situation had arisen because the Government had introduced the Interim Budget in a very irresponsible manner. UPFA... “The Government was following irresponsible financial policies and because of this today the people in the Government who were against taking loans are willing to take loans as a result of their irresponsible conduct. It is clear that this Government is not receiving any income,” he said. Pivithuru Hela Urumaya Leader and UPFA Western Provincial Councillor Udaya Gammanpila, who was also present at this media conference, explained that today the United National Party (UNP) MPs who were critical of the previous Government for taking loans with 8% interest are taking loans with 14% interest. “The Government’s decision to give fixed prices for plain tea and hoppers shows how uninformed this Government is when it comes to economic matters or economic management because it is impossible to give a fixed price for items or goods without any standards,” Gammanpila said. Meanwhile, MP Vasudeva Nanayakkara while speaking about the 19th Amendment said that his party would request that the Bill on the 19th Amendment be changed and resubmitted to Parliament instead of being taken for a vote this week. “Even the Sri Lanka Freedom Party (SLFP) which is a part of the Government is not expected to back the 19th Amendment in its present form. Prime Minister Ranil Wickremesinghe has threatened to dissolve Parliament if the 19th Amendment is not approved and will seek support for it from a new Parliament after holding general elections. But the Prime Minister does not have the power to dissolve Parliament as that can only be done by the President,” Nanayakkara said.