Govt strengthened public sector- Education Minister Bandula Gunawardena

Parliament

Irangika Range, Sadasen Marasinghe and Disna Mudalige

Speaker Chamal Rajapaksa presided when Parliament met at 9.00 a.m. yesterday. After the presentation of papers and oral questions, the committee stage debate on budget proposals 2010 commenced. The financial head on Finance and Planning Ministry was taken up for debate from 9.30 a.m. to 6 p.m.

Education Minister Bandula Gunawardene: Opposition Members made baseless arguments that the Government is corrupt and there is an excessive number of ministers.

The inland revenue is Rs 817 billion and out of it Rs 297 billion of which 36 percent is spent on salaries of the public servants.

When the Opposition was in power attempted to reduce a number of public servants to six million. We have done a lot to strengthen the public sector. There is no Government in the history that did not take loans. Our Government has invested Rs 300 billion. This is the first Government in the Sri Lanka history that has allocated such a large amount of money for investment.

John Amaratunga (UNP): It is useless if people are starving.

Education Minister Bandula Gunawardene: No body is starving. If we want to reduce the prices of goods we have to increase investment. Is there anybody who can deny the fact that this Government allocated highest volume of money on development. The Government has allocated Rs 100 billion on education. That is 10 percent of the Government revenue.

If we reduce recruitment to the public service and prevent from taking loans we could reduce government expenditure. Then, the public service State banks would be bankrupt.

I question you how could the country conduct an operation against Prabakaran who attacked us with missiles without equally strong weapons the government had to take loans for that.

If there is a leader in history, that faced fuel crisis, economic crisis, food crisis an terrorism it is President Mahinda Rajapaksa.

The government has reduced the unemployment rate to 5 percent for the first time in history. We maintain the development rate at 7 percent.

Ranil Wickremesinghe (UNP): Professor G.L. Peiris yesterday quoting a report of the United States Senate said that I urge them to pressurize the government. It is clearly noted in it that there were allegations against both sides.

I asked to pressurize the government on the matters of intimidation on media.

Banks are taking excessive profits by taking interests on loans. Who enjoys these profits? They are not transferred to depositors or loan applicants. They are enjoyed by the management and chairman and other officers.

The UNP always came forward to shore up the collapsed economy. The economy was stabilized under all UNP regimes. We were able to implement many strategies to strengthen the economy. Many factories were opened in villages during late President Ranasinghe Premadasa’s era. Trade Zones set up in Seethawaka, Sapugaskanda and Koggala vastly contributed to uplift the economy. We have been able to initiate the Janasaviya program to support the poor.

The Government has not increased fund for education, health and transport. It allocated a huge amount of money for IIFA. The cost of living has gone up and the poor are suffering. The government does not have money. They have failed in managing the economy. The public servants who were waiting for a salary hike are frustrated. What happened to the money collected to the Api Venuven Api Fund?

External Affairs Minister Prof GL Peiris: The entire country benefits from the stable economy after the war. Speedy development has taken place in the country including the North and East. The United Nations’ office in Colombo has not been closed. Only a part of a regional office was closed and operations will be continued. UN representative Neil Buhne has been to the UN Head Office for the consultation. He will be back soon. The Government has ensured the security for the UN staff.

We are constantly in touch with Neil Buhne. The demonstration staged near the UN office is peaceful. The Government is committed to have a dialogue with the UN to find a solution for this.

Kabir Hashim (UNP): I am thankful to Wimal Weerawansa for starting a fast. I request other Government members also to join in the fast. Then they will understand the pang of hunger and will look into the broken promises.

The Finance Ministry is in a crisis. It has no money even to service the debts. It is like a barren cow. The Government is not continuing the policy they earlier upheld. They are talking different policies now. The Finance Ministry must take the responsibility for the country’s financial situation. Because it is the Ministry that operates Government decisions. The Budget deficit has increased.

Deputy Finance Minister Dr Sarath Amunugama: Many countries are running with a deficit finance today. The situation is the same in countries like France and Japan as well.

Kabir Hashim: The Government has diverted from its earlier economic policy of creating self-sufficiency by improving local production.

The steps taken to reduce this deficit is dangerous. There are weaknesses in the management of economic policies by the Government.

Thilanga Sumathipala (UPFA): The point of Kabir Hashim is not clear. Is he asking to work with the IMF or not? We have obtained loans in parallel with the income of the country. The income has gradually risen. While analyzing economic policies, it is clear that the Government is taking the correct path.

The country needs to welcome economically strong investors. The Government improves investment intelligently and strategically. The unemployment and poverty will be reduced through proper economic policies. The Opposition has no alternative for the task.

We are also strengthening the local bank system. Otherwise, we will have to depend on foreign banks. The entrepreneurship is encouraged. We have looked into every aspect of the country in this Budget.

We have become innovative. A performance evaluation will be done for the Government employees and they will be given an allowance according to that. New strategies like these should be implemented for the development of the country.

Sujeewa Senasinghe (UNP):

This is the first time that a budget is presented when the Finance Minister is in abroad. Acting Finance Minister Sarath Amunugama cannot present his proposals and suggestions in the Cabinet as a non-Cabinet Minister. The liberal economic policy should be adjusted for the requirement. It must be adjusted in a way that the people can be given reliefs. About 11 institutions were privatised by this Government since 1994.

Economic Development Minister Basil Rajapaksa: No institution was privatised under President Mahinda Rajapaksa.

Sujeewa Senasinghe :

You have to bear the responsibility for the wrong doings of the Government in the past as well.

The money spent for imported goods has increased considerably. How can it be said that the nation is rebuilt? We even import salt to the country

Social Services Minister Felix Perera: The Government has converted the complex tax system into a simple system.

The preface needed to make the country Miracle of Asia is given from this budget. We have mainly concerned about the tax system.

A leadership that can take direct and strong decisions is needed for the country.

We have received it today. The credibility of our leadership is clear by the act of inviting him to solve internal matters of other countries. The Mahinda Chinthana Idiri Dekma policy is accepted by the people.

They have faith on it because it is based on the policy of strengthening the local economy.

Today the Government employees and the retired people who obtain pensions have increased considerably. This is a considerable weight on the Government.

P Ariyanethiran (TNA): The Government has to accept it has cheated the Government employees by promising salary increment. In the Batticaloa District, most areas are deprived of electricity.

Deputy Chairman of Committees Murugesu Chandrakumar takes the Chair

Vasuveda Nanayakkara (UPFA): We don’t have a liberal economy. There are features that the UNP and Opposition cannot accept and comprehend. This is an economy designed for the people of this country.

You know our income source is tax. There is a difference between tax collecting between our Government and the UNP Government. During UNP regime, those who were willing could pay tax and those who were not willing could evade it.

So, the people did not pay tax. There were a large number of tax defaulters. That happened after the UNP brought an Act to grant amnesty to tax defaulters. The Government lost a great revenue. At last, what happened to that money.

Sunil Handunnetti (DNA): There is a great contrast between the estimates of the Budget and the genuine estimates. Some Ministries obtained only 65 percent of the estimated allocations in 2009.

Minister Nimal Siripala de Silva said the loan taken from the IMF was invested. It is not correct.

Finance Deputy Minister Dr Sarath Amunugama: We obtained the loan but it was taken from banks such as the Bank of Scotland and granted through IMF at an interest rate of one percent. We deposited the same money in their own banks at an interest rate of 3.5 percent.

Dayasiri Jayasekera (UNP): The Government has failed to reduce the Cost of Living. It has become a big problem since prices of essentials has gone up. The private sector has also been collapsed. Nearly 400,000 in the private sector are jobless.

The people suffer a lot due to the Government’s tax system. The cost of maintaining five member-family has gone up Rs 35,000 to Rs 57,000.

Public Administration Deputy Minister Dilan Perera: The Opposition Leader went to the UN Senate and asked them to pressurize the Government to publish incident reports on alleged war crimes. We know how the UNP acted to destroy the image of the country.

But we are ready to face any challenge.

Sajith Premadasa said Ban Ki-moon was incorrect but the Opposition Leader said the UN Secretary General is correct. Why does the same party has two different views.

Rehabilitation and Prison Reforms Minister D. E. W. Gunasekera: The misunderstanding with regard to the Government’s revenue of the Opposition should be clarified. The State revenue was brought down to 24 percent to 13 percent during 2004. It was not increased even during the Chandrika Bandaranaike era. But following correct financial policies, we have been able to increase the revenue from 13 percent to 16 percent in 2005. Despite the war, the Government maintained economic growth to 6 and 7 percent in 2007 and 2008 it has gone down to 3.9 percent due to the humanitarian operation. The country was affected by natural and manmade disasters since 2004.

The Opposition must have constructive criticism. But today, the Opposition talks only about the Rajapaksa family.

Harsha de Silva (UNP): The Government said it has not submitted IMF conditions. I can show you conditions imposed by the IMF.

The Cost of Living within the last six years has increased upto 100 percent. The Government forgot the people. They obtained the vote by giving false promises. It is since the Independence that it has been proposed that Sri Lanka would become a ‘Miracle of Asia’. But we have failed to achieve the target.

Economic Development Deputy Minister Lakshman Yapa Abeywardena: I ask Harsha de Silva to table the conditions they say that we agreed to the IMF. The economic progress in the country is clearly visible. In my seat, about 72 percent of the voters gave their votes to the President. They gave it because they witnessed the prosperity the country is gradually reaching. Poverty has declined to 15 percent. The GDP has also grown. And the country has reached 7.2 percent economic growth. We reached these economic landmarks while managing the global economic crisis.

The fertilizer subsidy takes about Rs 29.6 million. The Health Ministry has also been given a large proportion of money.

There was a fear in the country that the banking sector will collapse. But we could manage the situation well. When Seylan and some other banks collapsed, the Government took measures to safeguard others.

Iran Wickramaratne (UNP): The duties of the Presidency have grown up. The money required for it has also grown up. A less amount is allocated for the other matters.

Deputy Speaker Priyankara Jayaratne takes the chair.

Youth Affairs and Foreign Employment Promotion Deputy Minister Mahindananda Aluthgamage:

The Samurdhi benefit has been increased and the poor are given reliefs. When considering the Ministries and institutions under the President, one can decide whether allocations for him is fair or not.

The crimes rate and prostitution is the country have declined. Eventhough the war has ended, the expenditure for defence will not end. We have to work for the wellbeing of the soldiers, their wages should be paid and facilities should be given for them and their families.

Harin Fernando (UNP):

I express my dissatisfaction for Mahindananda Aluthgamage for just criticizing and expressing nothing more. As the Opposition we talked responsibly all the time and we never directed personal criticisms.

We have a right to criticise the Government please analyse these criticisms without shouting against them.

Murugesu Chandra Kumar (UPFA): Kilinochchi and Mullaitivu areas have to be given priority in development and good governance. I also say that concerns should be paid for self-employment like agriculture, fishing industry. Farmers should be provided concessions for tractors, hand tractors, fertilizers. The irrigation should be developed.

HMM Harees (UNP): The Government spent last few years to end terrorism. We have bitter experience with the LTTE domination in our areas in the East. I appreciate the Government for eliminating terrorism. Minister Basil Rajapaksa has attended to peoples issues and solved them. In Kalmune the Government constructed 450 houses at a cost of Rs 1,000 million. In Maradamune, he constructed 169 houses and another 200 were constructed in the Eastern Province. Irregularities happened at the distribution of houses.

Deputy Chairman of Committees Murugesu Chandrakumar takes the Chair.

Finance and Planning Deputy Minister Chandrasiri Gajadeera: Our Budget has the vision of the country’s financial control. During President Chandrika Bandaranaike’s regime, a humane aspect was introduced to the open market economy. The JVP voted in favour. Now we have adopted a new economic policy suits to the country.

Still the global crisis is haunting over developed countries and still the danger remains. But Sri Lanka has handled the situation properly.

J.R.P. Suriyapperuma (UPFA): The open-economy cannot provide solutions for the problems that prevail in the country. Without firm and substantial involvement these problems cannot be solved. That is why people have placed their confidence in President Mahinda Rajapaksa. Measures have been taken under the leadership of Mahinda Rajapaksa to make this country self sufficient.

Sarath Weerasekara (UPFA): The opposition alleged that the Government is engaged in deducting money from the salaries of soilders for houses in Ipalogama. This is a lie. We have constructed 1,500 houses equipped with modern facilities. Each house is valued at Rs. 2.8 million. We handed over these houses after calling applications.

We have not used a single cent to construct houses in Ipalogama.

Finance and Planning Deputy Minister Dr Sarath Amunugama: Plans are afoot to implement solid strategies to carry forward the economy. We have been able to manage the economy in a satisfactory level. The GDP growth has increased gradually.

The per capita income has also increased. We have been able to stabilize our exchange rate and it has benefited consumers.

The inflation rate has gone down. With these statistics, we can prove that the economy of Sri Lanka has not collapsed. You have to admit that there is huge development in the country. The primary education in Sri Lanka is sustained in a satisfactory level. The child and mother mortality rate have gone down.

Funds allocated per pupil has gone up from Rs 17,886 in 2007 to Rs 25,900 in 2009.

Sajin Vas Gunawardena (UPFA): MP Harsha de Silva talked about Samurdhi. I ask him to go to the village and see. You are not with the people. That is why you are in the Opposition today. I ask him to mingle with the people and understand their real problems.

Economic Development Minister Basil Rajapaksa: I am happy to engage in the Budget debate today. There are several characteristics in the Budgets presented by the Mahinda Rajapaksa Government. We did not say one thing to the people and act in a different manner.

The infrastructure of the country was very poor when the President came to power. In other words, the basic infrastructure needed to develop the country such as transport was not there. In the transport sector, there are highways and railways. We have started to develop both these categories. As a result, the roads and railways were reconstructed, new highways were built and flyovers were built.

Today, we also construct new ports. These were in demand in the country for a long time.

For development, energy and power are critical. Continuous power supply was one key aim that the President had when he assumed duties. I am happy to say that we did not cut electricity until now.

The irrigational work has also been accelerated. All the irrigation work that were proposed have been started by the President including Moragahakanda. We hope to supply water to all corners of the country very soon.

The Government has also payed attention to urban development as well. We give encouragement for local production. We want to make this country self-sufficient from paddy and vegetables. That is why adequate relief needed for local farmers are included in the Budget.

We want to uplift the living standards of the people who receive Samurdhi. We do not want them to depend on Samurdhi eternally. They must be given incentives to stand by using their own capabilities. We give necessary facilities for them to move forward.

We have no racial discrimination. Sinhalese, Tamils and Muslims are all equal and all must be given equal opportunities to live freely without a problem. They can now move in the country freely. There are no more restrictions. People can go to any kovil today. We have secured the rights of the people.

We hope to reduce the deficit of the Budget by eight percent by efficient management of resources. This was not done due to the IMF request. This was mentioned in the policy statement of the President. For this task we are not going to curtail any relief or subsidy given to the people.

We pay more concern for investments. The State income was higher than the interest of debts in 2008 for the first time.

Deputy Speaker Priyankara Jayaratne takes the Chair

Ravi Karunanayaka (UNP): This is a time that we should correct the State economy. The Government thinks that we criticize the Government all the time we speak. But if they considered our suggestions they could have come out of this economic crisis.

Speaker Chamal Rajapaksa takes the Chair

The IMF has asked not to increase reliefs and subsidies given to the people. Saying that they will be given in the 2011 budget is not fair people need it today.

It there had been the capability, skill and innovative thinking. They could have given the promised salary hike. The Government is playing with the people’s money.

Irrigation and Water Resources Management Minister Nimal Siripala de Silva: This government is not afraid of criticism and if cannot be suppressed by any eternal power.

The UNP is criticizing the Government for going after the IMF. But it is the UNP, and not us, that had agreements with the IMF in the past.

They could not give at least one job, due to the understanding they had with the IMF. It is this same UNP, that is shouting against the IMF today.

Speaker thanks...

Speaker Chamal Rajapaksa thanked President Mahinda Rajapaksa, Prime Minister DM Jayaratne, all MPs of the Government and Opposition, Parliament staff, journalists and the Security Forces for their support received in conducting the budget 2010.

July 12 was declared a holiday for Parliament staff.