Parliament

Budget 2012:

‘The UNP sold govt institutions to bridge the budget deficit’

Sandasen Marasinghe, Irangika Range and Disna Mudalige

Speaker Chamal Rajapaksa presided yesterday when Parliament met at 9.30 am. After the presentation of papers and oral questions, the House took up the second reading of the Appropriation Bill for the fifth alloted day.

A 50% deficit difference between inland revenue and expenditure

Joseph Micheal Perera (UNP): There is nearly a 50 percent difference between the inland revenue and its expenditure. It has been planned to fill this gap out of loans taken from within the country and from outside the country.

Although it had been said in the budget speech that salaries of public servants had been increased, it had been an allowance that had been added to the salary.

Medicine is not being manufactured in Sri Lanka. There is a lack of medicine in hospitals.

Money had not been allocated to build up new houses. Housing is a serious issue today.

There is no allocations proposed in this budget to encourage small-scale and medium-scale enterprises. The prices of commodities are increasing. What has happened to the allowance for milk powder for children that you promised? Foreign investments are not flowing in. The budget is a burden to the country.

Construction, Engineering Services, Housing and Common Amenities Minister Wimal Weerawansa

Deputy Speaker Chandima Weerakkody takes the Chair

I have been giving ear attentively to the speech made by MP Joseph Michael Perera. He never said that this budget had reduced welfare that had been provided so far. It means that this government is still providing massive welfare to the people so far. You spoke of taking loans to bridge the budget deficit.

That question should be asked from the UNP as to who obtained loans and sold valuable government institutions to bridge the budget deficit. But this government has no need to sell government institutions to bridge this gap. We need to stop taking loans, but we are unable to stop it abruptly, although we need to do so. It is a trap set by UNP governments. We have positive dreams about our economy.

Joseph Micheal Perera spoke of the public service. Now there are 1.2 million serving in the public services. The UNP tried to reduce the public service to 0.6 million. We gave them increments.

Joseph Micheal Perera said that the country is subjected to militarization, and the members of the forces were cultivating weeds in the Parliament grounds. What is this? Aftermath the operations, we have not sent a single forces member home. None of the civil security forces have been sent home as there was no threat to villages.

What is wrong in triforces members who won the war for this country, to get themselves involved in the development drive?

Is it militarization? But what will happen if Mahinda Rajapaksa lost the Presidential election? Who would win and what about the list that was prepared to be assassinated? Is it not militarization? The UNP is bringing forward arguments that contradict their own.

The Opposition also criticised that country’s law and order had collapsed. The Opposition MPs attempted to showcase the unfortunate killing of former MP Bharatha Lakshman Premachandra as a failure in the enforcement of law. But this was not reality. When justice has not being meted out by Court, one can appeal against it in the District Court. People can seek justice from the Supreme Court and Appeal Court. The law is operative throughout the country. There is no doubt about it.

The Opposition always tries to attempt to complain to international bodies over internal problems of the country. They go to UN Human Rights Council over alleged human rights violations within the country. These are internal problems that should be probed within the boundary of this country.

The Opposition also said that this government was following neo-liberal policies. If the policies followed by the present regime are called neo-liberal, then how can one call the policies pursued by UNP leader Ranil Wickremesinghe?

This government follows a path unique to the country and its economic policies are far sighted and adjusted to suit the country.

When a budget is presented, what should be looked into is whether it has suggestions to drag the country back or make it weaker. I ensure that there are no such suggestions in this budget. Then we have to look whether there are proposals to improve the economic status of the country. In this budget, relief has been provided to the industrial and service sector. The country’s economy will gradually rise due to these proposals.

This budget has not been presented with the aim of depending on long-term debts. It has proposed income generation avenues to reduce the debt burden of the country gradually.

Public servants are to gain only an allowance

Dr Jayalath Jayawardena (UNP): I would like to remind Minister Weerawansa that it was President Mahinda Rajapaksa who first sought the help of the Geneva Human Rights Council amidst turbulence in 1983, when human rights deprivations were taking place in the country. So the first example of this habit was given by the President himself.

Public servants are only given a 10 percent allowance of their basic salary.

This salary hike does not account to their EPF or ETF. This government has deceived the people. The cost of living is rising sky high and people are in a miserable situation.

The depreciation of the value of the rupee is not suitable to a country such as Sri Lanka.

The Police is the main institution that protects the law in the country. People have lost their faith on this institution and people take the law into their hands. This is what is happening in the country today.

I also request the government to extend the given salary hike to the private sector as well. The private sector employees are not given any benefits from this budget.

A national budget suitable to our country

Scientific Affairs Senior Minister Prof Tissa Vitharana: On behalf of the Lanka Sama Samaja Party (LSSP), I extend my appreciation to President Mahinda Rajapaksa and the Treasury for the manner in which they have run Sri Lanka’s economy resisting even the global economic crisis. This is a national budget which is very suitable to our country.

The world is facing difficult times and countries are prone to promote the selling of military weapons to increase their income. For this purpose, these countries even provide incentives towards civil conflicts in countries. As a country, Sri Lanka has to face these challenges with wisdom.

The COPE report has now been completed and I must note that as the government we have to take measures to curb the shortcomings in public enterprises by analyzing them. A people-friendly rule should be established and priority should be given to satisfy their needs.

We are grateful over the development process taking place in the country. However, when these development activities are taking place, the government should pay attention to place less burdens on the ordinary people.

We have to take steps to reduce the gap between expenses on imports and revenue of exports. Today the amount we spend for imported goods is higher than the revenue we obtain from exports.

As the LSSP, we observe that more priority should be given to promote savings within the country. More weight should be given in this aspect.

We also think that the promotion of Development Banks is also necessary. These proposals will help towards better economic management.

I also observe that corruption, bribery and fraud should be curbed as much as possible, for the better future of the country.

Buddhika Pathirana (UNP): The budget is a very important document which would decide the future of any country. Many disparaties in several sections could be seen in this budget. Nothing has been mentioned for the betterment of the people.

The value of the rupee has been depreciated. This will badly affect the private sector workers and entrepreneurs. Funds allocated for youth affairs from this budget had been very low. We cannot be happy with this allocation. The government has not paid attention to allocate money for the moral development of the people.

The government should give priority for the improvement of physical resources as well as moral development and discipline.

Justice Minister Rauf Hakeem: This is a very praiseworthy budget which would cater to the requirements of the country. The budget has been prepaired focussing on speedy development. Special allocations have been made to protect the people from natural disasters. A sum of Rs 300 million has been allocated for this purpose.

In addition, funds have been allocated for coast conservation. The significant feature of this budget is the deficit reduction.

It is commendable the budget proposal of setting up of an International Arbitration Centre in Sri Lanka. As a whole, the budget presented was targeting the economic development, environmental development and political stability of the country.

Ruwan Wijaywardena (UNP): Free education and free health facilities are very vital to create a good nation. Therefore, sufficient allocations should be made for the enhancement of these sectors. The lack of teachers in schools and facilities in schools have resulted in the close down of a number of rural schools.

Productivity Promotion Minister Lakshman Seneviratne: The Opposition said that the Hambantota Port was a useless project and criticized the Expressway. Do they know that Ranil Wickremasinghe laid a foundation stone to construct the Hambantota Harbour, but could not do it. If he could do it, why not President Rajapaksa? The UNP took measures to construct the expressway. Two ministers under the UNP regime took money from contractors to do so, but it failed. All Opposition members are talking maliciously about the budget.

E Saravanapavan (TNA): When operations in the North had been over, we were eagerly looking forward to a solution for the number one issue in the country, the ethnic issue. But it did not materialize. This budget has allocated the highest amount of money for defence.

The government is not allowing any donor to carry on development projects in the North.

The government has to be adamant.

A H M Azwer takes the Chair

Public Relations and Public Affairs Minister Mervyn Silva: Before we debate on the budget, we have to think of ourselves. If we think of ourselves, we and the Opposition have no arguments. Budgets were presented since the time of first Prime Minister D S Senanayake. But this budget is a development oriented budget. The development projects are in progress throughout the country.

The President considered all aspects from the most poorest to the rich when he drafted the budget. He has increased the allowances for the poor by Rs 750 as relief to them. For public servants a 10 percent salary increase. Basil Rajapaksa has shouldered the entire economy. Gotabhaya Rajapaksa is a hero.

I ask the Opposition, was there any period in history when such a large number of Buddhist flags had been hoisted and children attending Daham schools?

Parliamentary Affairs Minister Sumedha G Jayasena: I congratulate President Mahinda Rajapaksa for presenting an all inclusive budget for next year. I oppose the Opposition’s behaviour when the President made his budget speech in Parliament. The Opposition should not obstruct the good moves of this government.

I would like to remind you of the fact that the per capita income which was about 1,000 Dollars earlier, has now increased upto 2,800 Dollars.

The government and the leadership of the country were able to manage the economy in an efficient manner, while the economies of many countries in the world were collapsing. The main target of this government is to strengthen the domestic economic units and thereby improve the living standards of the people.

The grant of Rs 100,000 for the third child of security forces’ families have been extended to Police personnel families too. This is a commendable move for the welfare of those families.

Ven Athuraliye Rathana Thera (UPFA): The world is on the brink of a new era which would signal the shift of capital power to the Asian region and a change of traditional power balance in the world.

In a background such as this, food security has been very significant. The present regime has placed prominent attention towards this task. Programmes such as Divi Neguma caters to this target.

We should also think more about shifting towards organic fertilizer and measures must be introduced to prevent the use of various chemicals in food items and cultivations.

The energy crisis in the world is turning from bad to worse. Sri Lanka should be ready to face this challenge and we should have a proper plan towards this problem.

Dr Sudarshani Fernandopulle (UPFA): I take this opportunity to express my concern for the affected people due to inclement weather patterns in the country.

The country has recorded an eight percent economic growth rate. The poverty level has declined to 8.9 percent. The budget deficit was eight percent of the gross domestic product in 2010 which has fallen to 6.8 percent by 2011.

Even though the Opposition criticised that allocations for defence is too high for 2012, I would like to point out that as a percentage this amount has been less than the year 2011. About 300,000 military personnel contributed to defeat terrorism. We have to take care of them even though the war had been over.

There is a visible improvement in the health sector in the country. Maternity and child health facilities have been improved. This budget has proposed measures to improve the health facilities for the elderly people.

This budget has looked into the needs of all ethnic groups in the country.

S Alantin (UPFA): A rapid development should take place in the Northern Province. Their lives should be brought back to normal and income avenues introduced.

Measures should be taken to revive the agricultural sector in Jaffna and Kilinochchi. There are problems pertaining to the fisheries sector too. There are various intrusions from Indian fishermen. These should be looked in.

War affected people should be given aid and grants to improve their living standards. People who are living below the poverty line face numerous problems when buying food and clothes necessary for their lives.

The Jaffna Hospital is being upgraded with modern facilities and we appreciate this move by the government.

Abdul Haleem (UNP): The salary hike of public servants is not upto expectations. They expected a Rs 2,500 salary hike, but were only given a 10 percent salary hike from their basic salary.

Even this grant had not been given to private sector employees who count over six million in number.

The Colombo Stock Exchange has collapsed. Sri Lanka’s share market which had been considered as one the best in the region, has collapsed due to weak management.

This budget has not mentioned about the pensions for farmers as well. No proposal had been made to facilitate better markets for their products.

Agriculture Minister Mahinda Yapa Abeywardena: The entire country is now enjoying the dividends of peace. We have achieved peace despite many difficulties. We should all get-together to protect and strengthen the country. The brave leadership of President Mahinda Rajapaksa brought in peace to the country.

The country currently is self-sufficient in rice. We are seeking possibilities of exporting rice to other countries. One of the main challenges before us is natural disasters.

We must be in readiness to face them. There should be a proper mechanism in this regard.

We have a target of exporting 25,000 metric tonnes of rice by 2015. We have the courage and know-how to achieve this target.

This budget is directly helping our economy to achieve development. This will pave the way to achieve our economic prosperity.

Arundhika Fernando (UPFA): The aviation sector has been given utmost priority by this budget. The budget has allocated a massive amount of money to develop the aviation sector, including upgrading facilities in airports, purchasing of new air buses and expansion of airports.

For the first time in history, a massive amount of funds has been allocated to the North and East by this budget.

Meanwhile 1,000 schools across the country are to be upgraded. Fisheries harbours are being developed.

Today, paddy, coconut, vegetables, tea and rubber production have been increased due to the fertilizer subsidy. Concessions have been given to disabled soldiers and parents of War Heroes. As a whole, this is a development-oriented and welfare-focused budget.

Vino Radhalingam (TNA): There are displaced people still living in welfare camps in the North. They are facing a number of problems. They must be resettled in their native places.

There are a number of anti-social activities taking place in the North. Steps must be taken by the government to prevent such activities. Fundamental rights of the people in the North should be protected. What the government should do is to restore a peaceful environment in the North. So that the people could live in peace and harmony.

Disaster Management Deputy Minister Dulip Wijesekera: The budget is continuing to provide all the relief provided by the previous budget.

Today the people are standing with the government proudly whatever promises the Opposition gave to the people during the election period.

The biggest budget in its history

Shantha Bandara (UPFA): This budget is one of the biggest budgets in history, where a sum of Rs 2,220 billion is circulated and presented by the President.

This budget has provided relief to the people, but not for the Opposition.

Throughout the country, including all Grama Seva divisions, development is taking place while massive projects such as expressways are being completed.

Not only the economy, but the security of most countries in the world have become unstable today.

In such an era, our economy as well as our security is very much stable under the leadership of President Mahinda Rajapaksa.

Journalists and artistes have been serving this nation amidst many difficulties. Certain journalists did not have at least a house of their own. President Mahinda Rajapaksa paying attention to their problems, allocated them a sum of Rs 25 million for a fund to support them.

The Tamil members yesterday said in Parliament that the government could make expressways along A-9, but it cannot console the hearts of the Tamils. These members are afraid that the Tamil youths when they are given their share of development, would understand reality and build up unity with the people in the South.

People should unite leaving aside all differences.

Prasanna Weerawardena (UPFA): When we were schooling and were in our Advance Level classes, we are able to remember that the country was stagnating in one place, being unable to go forward due to two reasons. One was the terrorism menace, while the other was political unstability.

A few years ago, the defeat of terrorism was a dream and securing 150 seats in Parliament was a challenge.

But this government was able to defeat terrorism within a short period of time and also secure 160 seats under the leadership of President Mahinda Rajapaksa.

Yesterday we were able to open our first expressway proudly.

At Adjournment

Hingurana Sugar Company to be reopened

The Hingurana Sugar Company will be reopened during next year, State Resources and Enterprise Development Minister Dayasritha Tissera said in Parliament yesterday.

He was responding to an adjournment motion moved by DNA MP Vijitha Herath.

Vijitha Herath (DNA): I request the government to intervene to protect the sugarcane cultivators without politicizing these companies. Sugarcane lands should be distributed among sugarcane cultivators in a way that they can be benefited.

For the last 31 years, sugarcane cultivators have been neglected. Sugarcane farmers of the Hingurana Sugar Company shifted to paddy cultivation during its closure. Now people with influence are attempting to direct the farmers to shift back to sugarcane cultivation.

The sugarcane farmers should be given more facilities and loans to improve their cultivation. UNP MP Abdul Haleem seconded the motion.

Wildlife and Agrarian Services Minister S M Chandrasena: Today there is plenty of land for paddy cultivation. Even though severe floods had hit the country last year, there has been a surplus of paddy harvest. This was because we have access to the Northern and Eastern lands too.

However, lands allocated for sugarcane cultivation have not been sufficient. That is why we have promoted sugarcane cultivation in certain paddy lands.

State Resources and Enterprises Deputy Minister Sarath Kumara Gunaratne: Do not mislead the farmers. There is no force directed at them. All these lands had been offered for sugarcane cultivation and not for other cultivations. Some of these lands have been sold to other parties. So we have to rectify these errors by promoting sugarcane cultivation once again.

We even had to take over the Sevanagala Company since it had shifted from sugar production.

If Opposition MPs say that injustice had been done to these farmers, we are willing to look into them. We are always ready to support the farmers.

State Resources and Enterprise Development Minister Dayasritha Tissera: The Hingurana Sugar Company was privatized in 1993 and the owner of this company had left in 1996.

The Hingurana Company had collapsed as a result and the sugarcane cultivations had been abandoned.

The government has decided to reopen this factory next year and if this is not done, the company will be taken over.

About 850 hectares of sugarcane lands have been cultivated once again. The government has a share of 51 percent while the private company has a share of 49 percent of this factory.

The House was adjourned until 9.30 am today.