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
Nadira Gunatilleke
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.
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