Archives

More capital investment required in agriculture sector- Deputy Finance Minister

by Uditha Kumarasinghe

The existing banking system, specially commercial banks have failed to provide solutions to the problems of the poor. The high interest rates charged by these banks have aggravated the problems of the poor who are forced to even mortgage their traditional properties, Rural Economy Minister and Deputy Finance Minister Bandula Gunawardene said.

He said as a remedy, bank interest rates should be reduced below 10 percent while more capital investment should be made in the agriculture sector. In addition, interest free agriculture equipment should be provided to farmers.

The Minister was speaking at the inaugural ceremony of the National Poverty Conference 2002 organised by the United Nations Development Programme (UNDP) in collaboration with the Samurdhi Ministry held at BMICH on Thursday.

The Minister said the country's economy recorded zero point in the year 2001. The entire production process of the economy collapsed while the problem of poverty reached a decisive stage. In this situation, investment should be increased to develop the country's production and channel the income to the rural poor community.

But the lack of capacity to the state sector to increase the investment is one of the problems faced in this regard. In addition, there is no powerful private sector for large scale investments in Sri Lanka.

Except an attitudinal change, solutions cannot be found to the problem of poverty. The reason for this is " All believe that the Government should settle all these problems and a concept has been created that the Central Government should look after everything.

Gunawardene said every cent of the treasury is collected from the people of this country. If every possible tax is imposed, the treasury can only collect a sum of Rs. 300 billion this year. The expected income of the Government for the year 2003 is Rs. 317 billion. But Rs. 327 billion has to be found to pay instalments and interests for loans obtained during the year 2001 and 2002. Therefore, there is a Rs. 10 billion deficit of the Government income.

The Minister said the Government has to obtain Rs. 350 billion loan to pay the salaries, pensions, Samurdhi relief and other welfare services to the people for the year 2003. But the treasury has no money to provide these services. Eighty five percent money of the treasury is recovered from the taxes levied from the public. The entire people of the country pay taxes to the Government.

"If the public can be educated that every cent of the treasury belongs to them, we can commence a new beginning. However the Government should act as a facilitator and identify the hidden talents of poor by creating an attitudinal change among them. Poverty can only be alleviated through this public participation approach.

He said new alternative ways have to be evolved to overcome this situation. There is a national requirement to uplift the agriculture sector in rural areas. The problems have arisen regarding the productivity of the agriculture. To remedy this situation, modern technology and human resources should be provided to the rural poor community.

Despite these hardships, the Government will provide 1000 four wheel tractors to the farmers to increase productivity in the agriculture sector.

The Rural Economy Ministry will also take every possible steps to provide a stock of equipment to the craftsmen, he said.

Samurdhi Minister R.A.D. Sirisena said at present Ministry is seeking solutions to reduce the poverty through a public participation approach. Since independence, the poor have been directed for various subsidy schemes. " If the number of poor is increasing daily, we have been distributed not Samurdhi but poverty."

When we seek solutions to poverty, discussions should be first conducted with the target group of those who have been affected. A system should be formulated after identifying their key requirements, he said.

Chairman of the Sarvodaya Shramadana Sangamaya Dr. A.T. Ariyaratne and UNDP Deputy Resident Representative Ms. Christine Spoerel also spoke.

News | Business | Features | Editorial | Security
Politics | World | Letters | Sports | Obituaries |

Produced by Lake House
Copyright 2001 The Associated Newspapers of Ceylon Ltd.
Comments and suggestions to :Web Manager