Something for everyone

THE budget has come and gone. There is bound to be much in depth analysis by economic pundits as well as others on its pros and cons in the days to come.

There will no doubt be bouquets as well as brickbats some well meaning, others coloured depending on one's political leanings and parochial considerations.

A dispassionate observer however would view Budget 2007 unveiled by President Mahinda Rajapaksa on Thursday as a peoples's budget, one that would hold promise for the country's economic future and fiscal stability.

One would even venture to say it was short on promises but long on macro economic strategy geared to stimulate growth and give something for everyone.

That the budget itself has targeted a 10 year development plan speaks of the urgent need to charter a long term development plan for the country rather than laying accent on populist short term goals fritting away funds the country could ill afford.

This the President has taken cognisance of, given the absence of any liberal handouts but with all necessary safeguards and guarantees to protect the deserving and marginalised, whilst also providing the maximum incentives to the different segments in the economic sphere to stimulate growth and production.

Budget 2007 has also set an 8 per cent economic growth rate to be achieved during this period with other fiscal measures to raise the purchasing power of the people such as the goal of achieving a per capita increase from 1200 US dollars to 3000 US dollars.

Quite rightly President Rajapaksa has made agriculture and rural resurgence the thrust of his development drive, two areas which right through the years had been placed in the vanguard of the country's development drive but had somehow fallen short of expectation.

Essentially a leader with the grassroots touch from a rural milieu President Rajapaksa is only too aware of the importance of addressing these two vital areas for the social and economic stability of the country.

In this regard a Rs. 2 billion yearly allocation for an islandwide agricultural development programme for a three year period it is expected would step up production and improve the lot of the farmer who is the backbone of the nation.

Emphasis too had been laid on the Small and Medium scale sector where complaints of neglect have been made in the past particularly in the context of the fallout of the market economy.

The Budget 2007 has also laid elaborate plans for the development of infrastructure, employment generation, welfare and social uplift.

The President in his budget has also provided a bonanza to those on the verge of retirement by increasing the threshold of terminal benefits from Rs. 2 million to Rs. 5 million.

This no doubt would bring much relief to these public servants who perennially had been victims of financial policies of successive Governments as regards their pensions and lumpsum benefits.

The President as Finance Minister should be commended for cracking the whip on waste and profligacy in State institutions by introducing cuts in financial provisions on certain overheads in Government Departments.

The President while saying that provision of salaries for health, important public service and national security cannot be avoided however noted that expenditure incurred on account of telephone, water bills, vehicle repairs and maintenance etc. was far from satisfactory.

The President also cut 5 per cent of the provisions for loss incurring and underperforming enterprises observing that these losses were far beyond what the Government could afford and that these institutions should use their own assets to generate revenue.

We hope the President's message would communicate to the panjandrums running these fund guzzling entities to get their act together. The country is in no position to fritter away valuable financial resources in such cavalier fashion.

The President's move in this regard was to find every possible avenue to bring down the Rs. 13 billion budget deficit.

Given the magnitude of the waste in State bodies we have no doubt that the President could recoup a good percentage of this deficit by this stringent action.

The budgetary goals of the President to a large extent would hinge on peace returning to the country. It is not without this aspect in mind that the Head of State once again appealed to the LTTE to lay down arms and return to the negotiating table.

With the country's two major political parties pledging to work in unison to find a lasting solution to the national problem it behoves on every citizen to contribute their mite to enable President Rajapaksa achieve his economic and social vision.

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