A budget under trying times
The fourth budget of the UPFA
Government and the third under the stewardship of President
Mahinda Rajapaksa will be unveiled today in Parliament by the
President as Finance Minister, at a time the country is poised
at an important cross roads on many fronts.
On the one hand the country is on the threshold of a decisive
phase in its military campaign to crush the LTTE while on the
other, the economy has been taking a severe beating under the
weight of galloping fuel prices in the world market.
This however has not detracted the Government from its
development drive and credit for this show go to the President
for forging ahead amidst adversity.
It is in this context that today's budget assumes
significance for there will be many factors and forces that
would need to be balanced to push the country forward on an even
keel.
The public at large no doubt would be praying for some relief
to tide over the soaring cost of living while there will also be
much expectations from wage earners and the working public in
general for a pay hike that would ease their burdens.
On the kitchen front a reduction in the prices of essential
commodities are expected and an ease on the family budget while
pensioners who have been complaining of unfair treatment too
will be hoping for some relief.
On the other hand, the business community too will have their
fingers crossed with anticipation speculating on what incentives
or new taxes will be in store. The President in his budget
speech is also due to announce new revenue collecting methods by
expanding the tax net.
Budget 2008 as everyone will acknowledge is being presented
at a decisive stage especially when the eyes of the entire
Nation is on the military front. There will be many who be
willing to endure sacrifices to rid the country of the scourge
of terrorism.
At the same time the Government cannot ignore the immediate
hardships encountered by the people due to high inflation. Hence
the President is in an unenviable position to deliver a budget
that would satisfy all segments, plagued as the economy is by
mounting deficits caused by global factors that has had a knock
down effect on almost all essential commodities.
The President no doubt will do his best to convince the
public on the need for some form of austerity at a time the
Security Forces are enduring much sacrifices. But he would also
be mindful of the various outstanding issues that he has to
grapple with such as the demands of the unemployed graduates and
the issue of teacher salaries for which huge allocations would
have to be made.
Since the battle against the LTTE is being fought in earnest
with the Security Forces almost poised to enter the lair of the
tiger the President no doubt would justify the increase in the
Defence budget while also reiterates his commitment to a
negotiated settlement as he did during last year's budget.
True, there will be those who may try to declare this a 'war
budget' but no body could find fault with the President for
giving precedence to the Defence establishment at a time the
Forces are scenting victory.
It is in this context that one would expect the President to
appeal to the people to bear with the hardships to achieve the
larger goal of eradicating terrorism that has been the main
stumbling block in the Government's development drive.
The President will also no doubt stress on the investor
confidence in the country as demonstrated by the Government's
success with its sovereign bond issue where it obtained the US$
500 million HSBC loan.
He is also expected to enumerate on the progress achieved in
the Government's 10 year development plan while also dwelling on
the new mega development projects such as work on the Hambantota
Port, Norochcholai etc.
Unlike in the past, when budget day was a much looked forward
to event, today the people hardly pay any attention to it. This
is due to the growing public perception that present day budgets
go hay wire in no time with Governments resorting to
supplementary estimates to tide over financial woes.
Already the price of liquor and fags are up and there is no
knowing what more is in store. Time was also when there was
large scale hoarding of goods before budget day by traders while
'budget leaks' formed major scoops for journalists that enabled
the public to stock particular goods in advance.
In addition the public waited with the bated breath for
budget surprises and were glued to the radios during the budget
speech. Alas, no longer is this element evident on budget day
and people carry on regardless unhampered by budget blues. |