|
|
 |
 |
 |
 |
| Saturday, 20 November 2004 |
 |
|
 |
Budget 2005 | |
|
|
Ajith Nivard Cabraal Ajith Nivard Cabraal - Past President, Institute of Chartered Accountants of Sri Lanka and Eisenhower Fellow. My first impression of the budget was that there was a balance approach to many conflicting positions. In preparing a Budget for the country the Finance Minister is faced with the need to balance conflicting positions which makes the entire exercise highly complex. On one hand investors are seeking tax concessions so that there will be a thrust given to these enterprises. On the other hand people who are within the poverty line request various subsidies which will ease their burden. Similarly the Government has to maintain low interest rate, high growth rate, better distribution of income and high level of infrastructure. Lower inflation and growth in investment while another sector of the population especially the consumers are waiting for cheaper prices so that their living conditions could be improved, with the income they receive. At the sametime there is a vital need to improve the agriculture and fisheries sectors because the major proportion of the people of Sri Lanka are engaged in these fields. Therefore the Finance Minister's task is not an enviable one because he has to balance all these conflicting interests. In that context Dr. Sarath Amunugama has done well to provide solutions which are quite satisfactory to these different groups of people and those with opposing interests. For example he has linked the increase of salaries to the State-sector while at the sametime suggesting that they do more work. I do think any public servant would not grudge to give additional work because they would realise that on their part too is essential if the country is to turn around. I was particularly pleased that three rates of VAT have been created to make the distinction between the different categories of goods. At the sametime, the fact that Dr. Amunugama is attempting to widen the tax net using an innovative scheme while recognising good taxpayers would also be commended by many. At the sametime I feel that the budget should have addressed the fact that the garment industry is facing major challenge and therefore would have a tuff time ahead. Keeping that in mind I feel that Finance Minister should have encouraged at least two new industries which could be the growth industries for the country over the next 10 to 15 years. I did note that he is giving a push to the software industry which should be welcomed. However if similar push and thrust is given to the deep sea fishing industry as well taking advantage of our exclusive economic zone in the Indian Ocean, that could have been the major impetus for our struggling economy. I believe that it is still not too late to do so and I hope that such a inclusion would help to make the budget even stronger and more relevant to the needs of this country and her people. ##### Somaweera Chandrasiri President of the CTB Employees' Union Somaweera Chandrasiri said that the maiden budget of the UPFA government contained important benefits not only for the working class but for the whole country. "I consider it as one of the most people-friendly budgets ever presented by a Government. Several significant economic decisions have been taken by the Government for the welfare of the common people," he said. Commenting on the salary hike proposed for government servants, Chandrasiri said that although a 40 per cent increase was less than what they expected the Government should be commended for granting even that amount amidst numerous difficulties. ##### Vasudeva Nanayakkara New Left Front (NLF) Leader Vasudeva Nanayakkara said it was doubtful whether the Government servants' salary hike proposed by the Government could truly be considered an increase, given the increasing cost of living. "This year's budget is no different to those of previous Governments. It is premised on the same old principles of market economy. There is no mechanism for price control or to prevent depreciation of the rupee," he said. ###### Ceylon Teachers' Service Union The Ceylon Teachers' Service Union has hailed the UPFA Budget as a budget which created confidence and optimism among the public service and induced public servants to render a more efficient and fruitful service to the public. The union in a press release said this year's budget has deviated from the practice of giving a negligible pay rise to government servants by giving the highest percentage salary increase to them in the history of this country. This has also eliminated the salary anomaly of Rs. 1,750 created by the UNF government which increased salaries in the Health sector. The release signed by the Union's General Secretary Mahinda Jayasinghe said the budget has also given several other reliefs to public servants including a full medical insurance scheme of Rs. 150,000 each, housing loans upto a maximum of Rs. 1 million at a low rate of 4.2 percent interest promising a 20 perch plot of land for housing building, incentive allowance in respect of unavailed leave upto retirement and giving provision for mothers to obtain maternity leave upto a year. However the salary anomaly in the teaching service has not been solved in the Budget and the union hoped the government would solve it too in the near future since adequate funds have been allocated to the Education sector this time. |
|
News | Business | Features
| Editorial | Security
Produced by Lake House |
