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| Saturday, 20 November 2004 |
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Budget 2005 | |
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| To ease common man's burdens: Budget built on seven pillars By the Daily News Business Desk The UPFA Government's maiden budget for 2005 which stood on seven development strategic pillars of nation-building took a different turn from the usual budgets in the past and this time it took on a "common-man's budget' as it is mainly focused on rural economic development thereby strengthening the income of the poor and relieving the cost-of-living burden. Presenting the budget in Parliament yesterday Finance and Planning Minister Dr. Sarath Amunugama said 80 percent of tax revenue is raised from indirect taxes on consumption and asked is it fair. He said that the UFPA Government would widen the tax net and collect taxes from those who are avoiding payment of taxes and revenue duty. It is time that our people are encouraged to become responsible citizens, and understand that we must all pay our dues. Describing the seven development strategies Dr. Amunugama said that the Government would work to enhance effectiveness of public financial management and the efficiency of the delivery system to the people, transform the economy to knowledge and technology based as a catalyst of economic growth by ensuring high value added production using domestic resources, improve access through infrastructure at provincial and national levels to attract public and private investment, make the manufacturing base that is largely owned by private small and medium enterprises to be the nerve centre in the production process, make development more meaningful to the people letting strategic enterprises and the public sector to play a complementary and proactive role, reducing poverty through rural development and generating employment and promoting a caring society and respecting all cultural and religious values which would lead to a stable democratic society. Elaborating on the strategic budgetary planning for the next three years Dr. Amunugama said that within the medium term framework, Government revenue would be raised towards 19 percent of GDP and generate a revenue surplus in the budget equivalent to three percent of GDP. Public investment would be raised towards eight percent of GDP to develop national and provincial infrastructure, as well as north and east rehabilitation and human resource development facilities. Domestic debt financing would be brought down to two percent of GDP to enhance available resources for development of SME led capital formation and income generation activities. The medium term fiscal strategy would support a macro policy environment that would stabilise the exchange rate and interest rate regime through reduction of interest differentials between Sri Lanka and her trading partners, and underpin this strategy is a nationwide thrust towards poverty reduction and economic growth. |
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