Daily News Online Ad Space Available HERE

DateLine Wednesday, 12 November 2008

News Bar »

News: Troops regain Palavi ...        Political: Govt will establish democracy by defeating terrorism - Media and Information Minister ...       Business: CPC to restructure hedging ...        Sports: Windies beat Lanka to level series ...

Home

 | SHARE MARKET  | EXCHANGE RATE  | TRADING  | PICTURE GALLERY  | ARCHIVES | 

dailynews
 ONLINE


OTHER PUBLICATIONS


OTHER LINKS

Marriage Proposals
Classified
Government Gazette

Budeget Reaction

Nation salutes President for protecting national assets

Ven. Elle Gunawansa Thera:

The country was in a total mess when President Mahinda Rajapaksa assumed office. The country’s vital economic resources had been sold out under privatisation. Plans were afoot to hand over the North and East to LTTE terrorists on a platter.

Presenting a Budget of this nature within a mere three years after taking over such a country itself is a miracle.

This is a Budget which placed confidence in a national economy.

It has considered agriculture and economic development as a single component.

This Budget proves that the President had laid the foundation to create a nation which depended on three wholesome meals of rice per day as in the days of yore. The ‘Api Wawamu Rata Nagamu’ agricultural war had created a great reawakening in this country.

This had enabled us to stand on our own feet when the world economy had collapsed. The Budget has made a concerted effort to protect local industrialists. All Patriotic people should thank the President for proposing a Budget without resorting to the sale of National assets.

The greatest threat facing Sri Lanka today was terrorism. The Budget had given serious thought towards the welfare of the heroic forces who sacrificed their lives to defeat terrorism and their families.

The increase of the special allowance to security forces in operational areas to Rs. 5,000 was a salutary move. I am happy to note that payment of royalties to musicians, lyrists and other artistes had been made compulsory.

All in all presenting a successful Budget in the context of the present local and International background in a laudable service.


Incentives for Agriculture

Ven. Athuraliye Ratana Thera JHU Parliamentary Group Leader:

This year’s budget is a good one. It has enhanced National Security. Provision of incentives to Agriculture and Dairy farming is most laudable. The increase in the purchase price of fresh milk will be a big boost to the local dairy farmer. Steps taken to discourage cattle slaughter and protect milch cows is most commendable.

The proposal to grant a Rs. 200 monthly allowance to children in the 1 to 5 age group of low income families for the provision of fresh milk is a salutary move. The Budget had also laid emphasis on local production and carbonic fertiliser use. The Budget can be described a foundation and a stepping stone for a massive amount of development work.


Budget strengthened National Security

Keheliya Rambukwella, MP Minister of Foreign Employment Promotion and Welfare

This Budget has provided several incentives to boost agriculture while providing relief and salary increases to government servants.

Budgetary provision on measures to strengthen national security in appreciation of the sacrifices made by our valiant soldiers also cannot be forgotten here. Investment opportunities and incentives for such ventures have also been provided for in this budget.


Emphasis on self reliance

Basil Rajapaksa, MP Senior Advisor to the President

The Budget can be described as a good Budget in all aspects. It showed the President’s commitment to create a Northern re-awakening. The President’s short address in Tamil displayed his friendship and feeling towards Tamils in the North East.

The Budget had offered opportunities for people with self reliance to march towards progress. The Budget had been drawn up to boost countrywide development including Eastern Development.


Tax on imported food a commendable step

R.A.D. Sirisena Secretary UNP (D) Group

This budget laid emphasis on indigenous production and Security Forces welfare. The fuel price reduction would directly benefit the people.

The proposals for Northern and Eastern rehabilitation and IDP welfare are very significant. The country has already recorded progress in agricultural development. This would gain a further boost by the budget proposals. The tax on imported food items will definitely encourage local farmers to increase production.


Fuel prices decreased by a pittance

Anura Kumara Dissanayake, MP JVP Parliamentary Group Leader

The relief expected by public servants had been totally shattered by this Budget. Although public servants expected an increase in distress loans what they have been offered is quite insufficient to meet such eventualities.

Although the Government could afford a bigger reduction in fuel prices what had been offered is a mere pittance.

The Budget can be described as a futile exercise like trying to get tortoises to pull boulders. The government which boasted about a decrease in VAT had introduced a new Nation Building Tax.

The increase in the Airport tax and customs duty would impose further burdens on the people.


Effective measures to bring down inflation

Prof. H.D. Karunaratne Department of Business and Economics Faculty of Finance and Management Colombo University

The Budget for the year 2009 has focused on three factors the ongoing war, inflation and economic growth. The main objective of the Government is to end the war defeating the LTTE terrorism. That is the main agenda of the Government.

The Government has allocated highest amount of funds for the Defence budget. The people of this country has justified the position of the Government. With regard to inflation the Government has taken effective measures to bring down inflation.

To bring down inflation which was at the rate of 28 per cent to 27 per cent during the previous years and come down to 20 per cent at present the Government has targeted fixed income people such as Government Servants, Pensioners and other fixed income groups. The Government has given concessions to Public Servants and Pensioners by increasing their Cost of Living Allowance.

Apart from that the Government also has given subsidies for the middle class and low income level groups also by reducing the fuel prices. By means of reduced fuel prices low income and middle income level people can save considerable amount of their income.

The turmoil in the global economy due to the financial crisis in the US and the soaring oil prices also made bigger impact on inflation. However, the Government has assured that the fuel prices will be further reduced once the oil prices are reduced in the world market.

Higher taxes has been imposed on imported items is based on the policy of the Government to develop domestic oriented economy. The Government will not be able to achieve this only through imposing levies and taxes on imported items. There should be strong mechanism to see that the local production output is also going up in par with the imposition of these taxes.

If local producers also increase the prices of their local products in par with the increased prices of the imported items that won’t help increasing the local production to bring down the prices of these import substituting products. To avoid this situation we need strong monitoring mechanisms.

The Government has also focused on the economic growth. Sri Lanka for the first time after independence has been able to maintain 6 per cent economic growth for three consecutive years.

That is a big achievement. The Government has to restrict the imports to balance the dollar income as the tea and rubber prices has come down with the global financial crisis. So we have to bear with the situation.


Welfare of war heroes given serious thought

Brig. Udaya Nanayakkara Military spokesman

This Budget had appreciated the services rendered by war heroes who sacrificed their lives for the defence of the country. The Budget had set aside Rs. 4500 million to enhance the operational allowance from Rs. 3000 to Rs. 5000.

Housing is a common problem faced by war heroes as well. A majority of security forces personnel are members of poor rural families living with poor housing facilities. Youth joining the forces had a dream to bequeath decent housing facilities to their families. The Government intervening to fulfil that dream is most laudable.

The Budget had set aside Rs. 3500 million of building ‘Ranaviru Gammana’ housing schemes for war heroes. This will enable war heroes to forget family problems and concentrate on the war effort. These moves would also induce more youth to join the forces.


Budget provides Colombo facilities to villages as well

Rohitha Bogollagama, MP Minister of Foreign Affairs

I consider this budget on one that withstands world economy while providing for infrastructure facilities and tax benefits. President Mahinda Rajapaksa has presented this budget with relief to every sector in the face of a world economic recession.

Assistance and relief provided to paddy cultivation, benefits from reduction of oil prices on electricity bills, transport and industry are some of the relief measures introduced in the Budget.

It has also provided an impetus to take the facilities of Colombo to villages while providing for strengthening democracy by defeating terrorism. It has also provided incentives for investment opportunities. This Budget can also be termed on the one that has succeeded to keep the Sri Lankan Economy afloat in the face of a global economic recession.


Benefits to all sectors

Dr. Rajitha Senaratne, MP Minister of Construction and Engineering Services

The Budget has been well prepared to enable the country face the challenges posed by the global economic downturn.

It has taken measures to uplift all sectors including the farmer, fisherman, labourer and industrialist.

The fuel price reduction will bring further benefits to the people.


Tax relief on raw materials a boost to local industry

Kulathunga Rajapakse Managing Director of DSI Group

I can identify this budget as one that has the set target to increase the production in the country as a whole. This budget has given priority on local industries, including tax relief to production based on local raw materials in particular.

We can create jobs only through the development of local industry. Then we needn’t depend on the fluctuation of the dollar. Efforts made to promote the value of local products is also highly commendable.

We are one of the leading footwear manufacturers in the country. Tax relief on raw materials is a big boost to all footwear manufacturers including small scale ones. We are now exempted from custom duties and VAT.

Demand for local footwear is facing a danger from the influx of foreign items. Our products are not second to what is brought from other countries. This budget has also provided an incentive to the use of locally made footwear.

Custom duty on flour will increase the use of locally produced rice thereby reducing the flour import. This will provide a base for local agriculture including an attempt on the production of flour locally.

Cess tax on imported fruits is also a definite incentive on local fruit producers. Price reduction on fuel with further decline in oil price at the world market in future is also given consideration in the budget.

This budget can also be identified as a budget that satisfies the local business community as a whole.


Promoting local production commendable

Prof. Harendra De Silva

Various scholars expressed their views on the National Budget 2009. They pointed out both plus and minus points of the Budget. Here are some of their views.

Prof. Harendra De Silva - The general principle of the National Budget 2009 is promoting local production which can be totally agreed and very commendable. It is what we should do here in Sri Lanka at the moment. But the way it has been done is not acceptable because in some points very essential items such as footwear and health food have been listed as non essential items and heavily taxed.

As a country we have to think of long-term benefits and not short-term benefits. To do so, we have to promote solar powered, electric and hybrid vehicles and solar energy for homes.

Initially it is very costly but for the future it will bring enormous benefits for Sri Lanka because then the country will not have to face fuel crisis even when we get our own fuel. Future energy crisis is one of the major problems that all the countries are going to face including Sri Lanka.

What we need to do is, provide incentives for our local producers and encourage them. Enforcing huge taxes on certain items such as health food and solar powered, electric vehicles can cause long-term disadvantages and drawbacks. It will not promote local production.

At the moment local producers have a very negative attitude and they think that it is not worth producing goods locally when considering the hassle (procedures, documentation, trade union actions etc) they have to go through here. Steps should be taken to change their attitude and make it easy for them to do the production locally. This is how we can promote local production.

For an example today health food such as sugar free cola and chocolate is much more expensive than normal food but they should be available for half of the price of the normal food. At the moment we import and eat fruits such as apples and they have excessive amounts of preservative chemicals but we can promote local fruit production.

Dr. Rohana Lakshman Piyadasa said that there are two different sides of the 2009 National Budget. It has given several reliefs for the common man such as reducing the price of fuel and reducing the transport cost etc. It has also encouraged the local production and taken steps to promote local producers. Taxing imported items is also very commendable because it promotes local production and locally produced items.

 

EMAIL |   PRINTABLE VIEW | FEEDBACK

Gamin Gamata - Presidential Community & Welfare Service
TENDER NOTICE - WEB OFFSET NEWSPRINT - ANCL
www.millenniumvilla.com
http://www.victoriarange.com
www.deakin.edu.au
srilankans.com - news & information
Ceylinco Banyan Villas
Donate Now | defence.lk
www.apiwenuwenapi.co.uk
LANKAPUVATH - National News Agency of Sri Lanka
www.peaceinsrilanka.org
www.army.lk
www.news.lk
www.defence.lk

| News | Editorial | Business | Features | Political | Security | Sport | World | Letters | Obituaries |

Produced by Lake House Copyright © 2008 The Associated Newspapers of Ceylon Ltd.

Comments and suggestions to : Web Editor