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| Thursday, 9 December 2004 |
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The UPFA 2005 budget was probably one of the most eagerly waited and anticipated budgets since independence. Now that it is out, the message it sends is clear and precise. Budgets always are measured by its response to the political mandate the government presenting it has received at a general election and this is the only way of looking at the budget. The UPFA government is a people's government in every sense of the word. Its very fabric is woven with the threads of the people's needs and concerns. Dr. Sarath Amunugama the erudite Finance Minister has made no bones about the fact that while his budget must take the side of the masses, it had to be realistic. To this end he had to increase revenue with measures in the fiscal sphere that would not harm the poorer classes and would on the contrary give him the resources to spend on lifting up the poorer sections of the country. In order that an equitable distribution of the wealth and the resources of the country is achieved, he is seeking in three year periods to shift the balance of economic power more evenly from urban areas to the rural areas where two thirds of the people live. Consider these facts about the budget of November 18th and see how this policy has been worked into the fabric of the budget. The lower eighty per cent of the population in terms of their per capita income, are mostly benefited by the lowering of the prices of the most essential foods such as rice, dhal, chillies, onions etc, with the reduction of VAT by a huge two thirds, a reduction of the UNF fifteen per cent of the UPFA five per cent. Like Don Bradman he has stroked the ball all over the ground, with magnificent footwork. It is seen by all that he has covered all the ground necessary to convert the economic structures stultifying progress to structures which will bring about rapid economic progress. What citizen notes with satisfaction is that apart from the poor all other economically vulnerable groups are helped to live a better life by government intervention when market forces are unable to help them. Pensioners whose pensions were not enough to cover rising prices, three wheel drivers and other self employed people, farmers who needed more water for irrigation for their crops, working mothers who needed more maternity leave to look after their new born babies, even free uniform material for Sunday school teachers, are amongst the beneficiaries from this incisive understanding of the travails of vulnerable groups by the Finance Minister. Funds have been poured into development programmes for rural areas and the much needed infrastructure development to uplift rural economic development "Sanwardana Sangramaya", "Maga Naguma", "Suwahas Jana Pubuduwa", "Rajarata Navodhaya", "Dahasak Wew", "Pubuduwa Wellassa", etc. a new University for Uva-Wellassa. When people talk about the "private sector" they generally mean the big companies quoted on the Stock Exchange or the purely private big companies. But the backbone of the private sector is the Small and Medium sector or of enterprises in both manufacturing and services. For the first time a government and a Finance Minister with insight, have sought to nurture and advance its interests and make it a sector with a major role to play in economic development. Employment zeroes in for the first time on specified groups of the unemployed. First the forty four thousand unemployed graduates given State employment, now the thirty thousand "A" level unemployed youth and thousands of others to be given State employment and opening up other avenues for employment including measures to give opportunities to another 300,000 going for employment abroad. Unexpected by all was the decision to take the apparel or garment sector under the governments wings as it were and by eliminating VAT duties and tariffs etc. and other impediments to give its strength to meet the challenges of a quota free world. An unique feature of the budget inspired no doubt by the intense passion of the President for social justice, was both the increased spending and the detailed subject specific measures dealing with education, higher education, and health. To many in the private sector speculating on the budget there were expectations that higher corporate taxes, higher individual income taxes, land taxes, very much higher duties and taxes on luxury and semi-luxury goods, taxes on credit card transactions would be the order of the day. All these expectations proved to be fruitless. Just like the dire predictions when the three ministries were taken over last November and people were being told to expect anarchy, terror and war. What is the direction the country is heading for as a result of this budget? It is quite clear to an unprejudiced mind that the direction of our economy to be financed by the budget is the convergence of government economic policy with the needs of the people. That is why this budget is dubbed as a people's budget by a people's government for the people. Dr. Sarath Amunugama has blended economic policy and economic judgement with the raw economic expectations of the people and produced a budget for all seasons. The government has the necessary backing of the people in its implementation of the budget. The 40% hike in government pay will be followed by the private sector and all those employed by others will obtain increased wages and salaries. The political impediments are few. As far as the UNF opposition is concerned one of its supporting weekly newspapers has written that the UNF has so far failed to "connect" with the people and another weekly newspaper has gone off the tangent by attacking a speech made by the UNP Deputy Leader but its editorial by not attacking the budget but UNP Deputy Leader shows the acceptance of the budget by it. The government by this budget shows that the taunts thrown at it earlier this year that it is not implementing its manifesto promises are simply not true. This is the way we implement our manifesto is what the government can proudly say now and it is proof to the people that this indeed is so and that its needs are being met. - Citizen |
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