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| Wednesday, 21 April 2004 |
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Govt targeting rapid economic growth while meeting promises - Dr. Sarath Amunugama by Sudarshana Perera The Ministry of Finance in the UPFA government is to adopt a policy shift on fiscal management and responsibility paying emphasis on capital investments to kick start development of the economy. The government through well administered capital investments on rural agriculture, infrastructure development, electricity and employment generating ventures is targeting to achieve rapid economic growth while meeting the promises given to the masses through its election manifesto "Country Forward" or "Rata Perate". The Minister of Finance Dr. Sarath Amunugama, told the Daily News that in keeping with achieving financial fundamentals the government is strategising to earn higher returns for its capital investments which would allow them to achieve around 6% economic growth next year. "We are going to spend and earn", Minister Amunugama said. "Paddy farming is the backbone of our economy and we will introduce a policy package to aid the farmers. In this connection the cost of a 50 K.G bag of Urea fertiliser will be reduced by Rs. 200 from May 1, 2004 thus pricing a bag at Rs. 600 at point of sale" he said. Commenting on infrastructure development, the Minister said that expediting the development of electricity, roads, transport, ports and other key sectors were the priority of the government and funds granted would be fully utilised with utmost transparency which the last government was lacking. He said that rural economy especially agriculture would be given pride of place in development infrastructure to ensure these projects would help develop the country's agriculture sector", he said. When asked to elaborate on donor funding and commitment of the government, he said that they would be fully committed to their conditions but would be shifting emphasis in consultation with them in order to achieve real time productivity and fast tract growth. "All donor countries have extended their unstinted support to Sri Lanka. Countries such as China, Japan, India and other Western and European countries have pledged their cooperation to develop infrastructure, housing, rural electricity and other vital areas", he said. He said that the ministry through the heads of the revenue generating bodies would take steps to meet the targeted revenue collection. The Minister also said that the government through its policy shift would extend more support to local investors and strict regulation if necessary would be taken to address any measure that would discourage local industrialists. When asked to comment on the tax amnesty the last government implemented which the present government was critical of, the Minister said that he would study the issue and others in detail before coming to any conclusions. He said that the last Government was mainly concerned on narrowing the budgetary gap, reducing inflation and lowering interest rates sans much capital investment and the people's welfare. The new government is taking a paradigm shift taking into consideration micro and macro economic realities which would take the country on a vibrant economic path. |
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