UPFA Government's second Budget today :

Focus on economic growth, development

by Hiran H. Senewiratne

The second budget of the UPFA Government will be presented to Parliament today, with the main thrust on bridging the economic and social gap between the urban and rural sectors, Finance Minister Dr. Sarath Amunugama said.

Amunugama said Budget 2006 will focus on infrastructure development, education, health and transport.

He said that Sri Lanka is on the threshold of a knowledge-based society, which is an important factor to bridge this socio-economic gap. This year's budget aims to create a knowledge-based society to reduce the economic and knowledge gap in the Lankan society.

"This is President Chandrika Bandaranaike Kumaratunga's last budget and we have already laid the foundation to achieve a rapid economic growth reflecting two aspects, development and poverty reduction," Amunugama said.

"We were able to fulfil the last budget proposals by maintaining a six per cent growth despite the tsunami disaster which killed 40,000. There was also a loss of 100,000 jobs and the increase in world oil prices added to these woes."

"This year's budget also follows pro-growth and pro-poor philosophies to achieve economic growth in the country," Amunugama said.

"Both Presidential candidates are talking of an eight per cent to 10 per cent economic growth.

This can be achieved since we have laid the foundation for it in the last 10 years during the tenure of President Kumaratunga," he said.

The Government has also laid the foundation to achieve an overall economic growth of between eight per cent to 10 per cent in the budget. Certain sectors including telecom, ports, travel and tourism and SME entrepreneurs will benefit from this budget, he said.

Amunugama observed that Sri Lanka's younger generation have the potential to venture into the computer software industry to help bridge the knowledge gap between the rural and urban masses. "This will also help bridge the economic gap between urban to rural areas."

The Minister said they have to capitalise on the Millennium Development Goals to develop key sectors.