PARLIAMENT

Budget 2013:

'Detailed document on fiscal management presented for House approval'

Sandasen MARASINGHE, Irangika RANGE and Disna MUDALIGE

Speaker Chamal Rajapaksa presided when Parliament met at 9.30 am yesterday. After the presentation of papers and oral questions, the House took up the second reading of the Appropriation Bill (213) for debate for the sixth allotted day.

Heavy burden laid on the middle class

Lakshman Kiriella (UNP)

A heavy burden had been laid on the middle class from this budget. The budget has proposed a tax from super markets. Not only the rich class, but also the middle class and ordinary people buy goods from them. The government expects to collect Rs. 5 billion from this particular tax. So this will be an additional burden on the people.

Deputy Chairman of Committees Murugesu Chandrakumar takes the chair

From many budget proposals, the proposed super market tax is the one from which the government expects the highest revenue. The government should clarify as to how this tax will be implemented, because this affects people to a great extent. The government has tried to show that only the upper class buy goods from them. But this is not so.

The foreign investment in Sri Lanka should be promoted. Recently US President Obama visited Burma.

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

I raise a point of order. He visited Burma because it is a country which is geographically located. We should not be surprised over this visit.

He will not only visit once, but he will visit many more times. His visit to Myanmar is with hidden political strategies to destabilize China.

Lakshman Kiriella continues

I would like to ask as per whose request the tax on racing cars had been relaxed? Our children do not request racing cars, but a decent occupation.

External Affairs Minister Prof. G. L. Peiris

This budget was presented to cater to the new opportunities looming in the country in a context of peace and political stability.

We have concentrated on simplifying our tax structure and reducing the number of taxes.

This is essential to attract more and more foreign investments. Our endeavour to simplify the tax structure has been appreciated by the International Community. Moreover, the development of infrastructure facilities as well as the renovation of roads and electricity expansion in the country had helped towards bringing in more and more foreign investments

Many foreign governments have appreciated the political stability of the country. It not only benefits our country, but also many more countries around us. The role of the Sri Lanka Navy, in curbing illicit migration had been commended by the Australian government.

The Sri Lanka Navy also helps to control other money laundering and illegal activities in sea areas around our country. The Australian government has announced that it will send back Sri Lankan illicit migrants.

It they don't think Sri Lanka is safe and peaceful, they would not do so. There is no doubt that these people are economic refugees.

Shangri-La is a massive investment to our country. It is one of the prestigious hotel chains in the world.

It is now recruiting Sri Lankans as employees and providing them with internationally recognized training. Shangri-La is coming here because they think there are profits to be made from their investments and it is obviously not the only investor coming to the country.

Sri Lanka's relations with the Arabic world, which has a long history, had been revitalized and strengthened. There are four Gulf countries at the UNHRC sessions and 3 among them, despite their international political alignments, strongly supported us and actually canvassed on behalf of us. We had so far neglected West Africa. We are now rectifying those mistakes.

We also have very close affinity with some Island nations, similar to Sri Lanka, which pursue blue economies. Seychelles is one such island nation, Madagascar is another such country.

It is also equally important to arrange regional relations. Our volume of trade in the SAARC region must be improved. Our relations with India are very sound and when I say so, I really mean it. The people to people contacts between the two countries have also been flourishing. The bringing down of the Kapilawastu relics was one fine example for the people to people contacts.

The goodwill and understanding between Sri Lanka and India is very high.

The relationship between Sri Lanka and China has also further improved with the recent visits of the Chinese delegation to Sri Lanka. Our relations with the Russian Federation is also growing. I will further explain the matters connected to our foreign policy when the expenditure head of the Foreign Affairs Ministry is taken up.

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

The budget is a detailed document on fiscal management of the country presented for the approval of the House. The 'Regaining Sri Lanka' was the UNP economic policy and the fiscal management of the then UNP regime was based on this vision.

Regaining Sri Lanka curtailed the Public Service to 600,000

One proposal in the 'Regaining Sri Lanka' was to curtail the number of public servants to 600,000. According to this policy, the vacancies in public institutions were not filled. Compare this policy with the Mahinda Chinthana policy. The Mahinda Chinthana proposed to further strengthen the public service and accordingly, the 800,000 cadre in the public service had now improved to 1.4 million. People have given their franchise for the policy framework and vision set forth by the government.

He stated that we should treat the Western countries far more closely than China. However, China even before we pointed out, stated that the two countries should improve the trade. However, there is no political or economic conditions imposed to our country by China. In contrary, when western countries boost their relations, they impose a series of conditions. We must stress that the present regime is not ready to accept any condition that will harm the sovereignty and integrity of the country. We won't let foreign powers control our economy. We adhere to the vision presented in the Mahinda Chinthana. This is the difference between the UNP vision and the ruling party. Kiriella MP wants us to have more closer relationship with countries which want to interfere with our internal affairs. Do we have to show faith on a country which deprived the GSP+ relief to us? Three years after the war, we have laid the foundation for an economic forward march. The activities during the last three years had been far sighted and progressive.

S Yogeshwaran (TNA)

The government could not win the Eastern Provincial Council easily as intended. People in this area showed strong support to the TNA. This budget had not paid due attention to the resettled people. No allocations have been made for the betterment of their lives.

However, money had been allocated for a housing loan project for war heroes. It is a pathetic situation that the government has given zero attention to the Tamils in war-torn areas. So far even the basic facilities for the Tamil people affected by the war had not been provided.

Higher Education Deputy Minister Nandimithra Ekanayake:

We have achieved sustainable development and economic growth despite the negative aspects of the global economic crisis and 30-year long brutal war. Currently, our forest cover had reduced to 18 percent, due to various man made and natural disasters.

Therefore, we need to pay serious attention to this issue, That's why, President Mahinda Rajapaksa included a special proposal in this budget for increasing the percentage of forest cover by 30 percent. The government has answered the grievances of the July strikers and pensioners through this budget.

Budget fulfilling requirements of IMF

Vijitha Herath (DNA)

The budget 2013 had been presented by the government to fulfill the requirements of the IMF. The tax system had been amended according to IMF instructions. As a whole, the budget proposals had been formulated to please the IMF. It is very clear that there is nothing new in this budget. Even though the government is trying to show that this is a welfare budget, no relief has been provided to the people.

The contents of this budget are similar to the proposals presented by the last year's budget. As a whole, the budget is a failure.

Production-oriented budget based on Mahinda Chinthanaya

Good Governance and Infrastructure Senior Minister Ratnasiri Wickramanayake:

This is a production-oriented budget, based on the Mahinda Chinthanaya policy framework. The budget has paid special attention to promote national productivity. In order to boost agriculture, a number of incentives have been introduced.

We really appreciate the proposals of encouraging farmers to use organic fertilizer. It is a timely move which will lead Sri Lanka into a healthy nation. The budget proposals have been formulated with the view of making Sri Lanka self-sufficient.

The SME sector has been properly addressed and a number of facilities have been proposed. While giving due consideration to developing our economy, we all must join hands to provide our fullest cooperation to solve the ethnic problem. So I request the TNA members to participate in the Parliamentary Select Committee and give their fullest support to solve the national problem.

Telecommunication and Information Technology Minister Ranjith Siyambalapitiya:

The budget reflects the policies of the Mahinda Chinthanaya. These budget proposals are the driving force behind development. Various new proposals have been included to accelerate the ongoing development drive and initiating new development programmes.

It is a timely move by allocating a large amount of money to improve the IT sector. It has targeted to increase the computer literacy up to 75 percent in the future. Taxes on computer, computers accessories and internet facilities have been lifted. We refute the allegations made by the Opposition against the government with regard to this budget.

The budget has properly addressed the needs of all segments of the country.

Budget inconsistent

with Constitution

Eran Wickramaratne (UNP):

This is the 67th budget of the Sri Lankan Parliament and this is also my fourth budget speech. A budget should cater not only to one family or party, but for the needs of the present and future generations. The Court gave a historical verdict on the Appropriation Bill recently. It said the Bill contravenes the Constitution. Therefore, I must note that the budget that we are debating today is inconsistent with the constitution.

The budget deficit as mentioned was 6.9 percent in 2011, and 6.2 percent in 2012. However, these figures are not correct. The losses in some institutions are not calculated into this figure.

Therefore in reality, the budget deficit is much higher than 6.2 percent. The UNP under the leadership of Ranil Wickremesinghe had a radical economic policy.

Higher Education Minister S B Dissanayake:

The brutal war could not have been won by many former leaders in the country. However, President Rajapaksa did it bravely, earning a lot of love from the people.

There was criticism by many opposition MPs. However, indirect taxes are imposed for imported potatoes and big onions, etc, when the local harvest is coming to the market. Isn't it a good move to protect local farmers ?

The head on the expenditure of the President includes many vital sectors of the country. The President's expenditure is not just for his personal expenses. The public should understand this reality.

Many spoke about lifting the taxes on racing cars. This would strengthen the sports sector in the country which should not be frowned upon.

The UNESCO proposes the allocation of 6 percent of the GDP for education. However, calculating the allocation for education just by adding the allocations for Education and Higher Education Ministries has an economical flaw.

There are many indirect investments on education through various other Ministries and Provincial Councils. These should also be taken into account when calculating the allocation on education. We, as a country, spends a large sum of money on education. That is why our literacy rate and educational levels have been comparatively high.

In addition to education, we also spend a large sum of money on development projects. However, prominence had always been on education under the regime of President Rajapaksa.

Ranjith Madduma Bandara (UNP):

Minister Dissanayake took great pains to convince the House that the allocation for education in Sri Lanka is above 6 percent of the GDP.

The President repeatedly said that the poverty rate in Sri Lanka had drastically gone down. For a poor person in Sri Lanka, the annual income is US$ 650. Perks and other luxurious facilities cannot cater towards their needs. The real poverty rate is about 20-25 percent. Since their salaries are insufficient for their basic needs, the Samurdhi has become a political movement. Now the government is recruiting another 14,000 to the public service under the 'Divi Neguma'. This is another political move.

Economic Development Deputy Minister Muttusivalingam:

The people in the Estate sector have been given a number of facilities. Houses are being constructed and electricity and water provided.

Where education is concerned, there is a shortage of schools. But this government has taken many measures to develop education.

3,152 teachers have been recruited to these schools. Around 300 persons have been employed in the Postal Department in our area. However, another 100 employees are to be recruited.

The President has also instructed the authorities to sort out the teacher shortage in the Estate sector schools at the District Committee Meeting.

Jayantha Ketagoda (DNA):

We take nearly Rs 390,000 million as loans annually to meet the budget deficit. However, paying back the loans takes a long period. If the projects are beneficial it is good. But reality is otherwise. The farmers too do not have a chance to sell their crops. But the rich have been permitted to import racing cars.

Sriyani Wijewickrama (UPFA):

Law and order in Batticaloa is being maintained properly. The education level in Batticaloa is very high even more than Homagama.

This budget has come up with a timely proposal in connection with the organic fertilizer usage.

The government had proposed to grant a good price for paddy cultivated with organic fertilizer usage. It is appreciable that the government had initiated to convert the Hardy Technical College to university status.

National Heritage Minister Jagath Balasooriya:

The opposition, say that salaries and increments to public servants are inadequate and money allocated for eduction and other institutions are also inadequate.

However no country had so far been able to provide all these facilities through a budget. The same UNP when it was in power suspended the services of public servants when they protested for a Rs. 10 pay like.

The Sri Lanka Economy has stage by stage developed which is commendable.

Deputy Chairman of Committees, Chandra Kumar Murugesu takes the Chair:

No leader has so far been able to do miracles in developing their economies. It is a slow process.

Programme for economic stability, debt management not introduced

Rosy Senananayke (UNP):

The budget has failed to introduce a proper programme for the economic stability and debt management. Today corruption is rampant in the country. The government spends 35 percent of its revenue for paying back loans and interests.

Allocations for development of technology is not sufficient. How can we go for a technical revolution with this less amount of allocations? As a whole, this is not a people-supportive budget.

Health Deputy Minister Lalith Dissanayake:

This is a people-friendly budget. President Mahinda Rajapaksa did not cut off allocations made for welfare activities even during the war. Even after the war not a single cent allocated for the welfare and well-being of the ordinary people, had not been cut off.

The government has allocated a large sum of money for providing electricity to the people. With the construction of the Norachcholai and Kothmale power plants, we have been able to ensure a 24-hour power supply throughout the island. New ports and Airports are under construction. As a whole, we can experience a rapid development in key economic areas of the country.

Rural Affairs Senior Minister Athauda Seneviratne:

We have been able to provide electricity to 96 percent of households in the entire country. Our target is to provide electricity to each and every household next year. The country is selfsufficient in rice and maize due to the fertilizer subsidy. In addition to highways and main roads, carpeted and concrete, roads can be seen in rural areas. In order to develop the rural economy, we are visiting each and every house of the rural community, under the 'Divi Neguma' programme.

This is a development-oriented budget which has ensured the welfare and well-being of the people.

Buddhika Pathirana (UNP):

There should be a review of the previous budget proposals. We have to consider whether we have been able to achieve the expected results of the proposals presented through last year's budget.

Though the government pledged to provide mid day meals to schoolchildren through last year's budget, non of the students so far had received the midday meal. So we have serious doubts on the credibility of this budget. There should be a follow up of these budget proposals.

Now the people

live in peace

Sylvester Allentine (UPFA):

Now, history is changing. The people too have changed to live peacefully. After a long period, the people in our area have experienced a normal life. If the country needed to be developed, we have to encourage national production so that their future should be ensured. This budged has proposals for that purpose.

Budget a reflection on economic policies of govt

Rehabilitation and Prison Reforms Minister Chandrasiri Gajadeera:

Our country could drive our economy forward amidst many international economic crises. We could bring the development rate to 6.8 percent when other countries such as India too have slowed down their development rate.

Our budget is a reflection of the economic policy of the government for development. The majority of Sri Lankans earn their living by means of agriculture.

The benefits of the development had not reached the people in rural areas. The Government has taken measures to take these profits to those rural farmers. That is why this budget encourages the use of organic fertilizer to restore water resources, forests and soil. The budget has allocated money for research in the sea beds in our territorial waters. It is a commendable approach for a developed economy.

Deputy Speaker Chandima Weerakkody takes the chair

Wasantha Aluvihare (UNP):

This budget is formulated in a manner to put an extra burden on the people. Poverty and malnutrition are increasing day by day. There is no market for the farmers' harvest. So the farmers have deviated from farming. The paddy fields are being reclaimed illegally.

The budget is not shallow as the UNP is trying to show

Nishantha Muthuhettigama (UPFA):

The President had visited each and every district and participated in District Development Committees. He has discussed and pointed out the projects that had been halted without being completed. That in how he activity participated in inspecting development projects in the country. He did not rest just by presenting budget proposals last year.

This budget is not a shallow one as the UNP is trying to show. This is a budget formulated to increase the per capita income to US$ 4000 by 2016.

Buddhasasana and Religious Affairs Deputy Minister M. K. A. D. S. Gunawardena:

This budget is the best budget presented to grant relief to people in the long run. Salary increments to public servants, pension increments and relief to farmers have been given. The President has alsopromised to grant relief to the Police as well.

The UNP betrayed the country by supporting the LTTE. President Mahinda Rajapaksa reversed or revert it and now all communities are able to live peacefully.

The Kantale Sugar Factory was initiated during the period of SWRD Bandaranaike. The UNP sold it for a song. But UNP MPs say that it was set up during the UNP regime.

At adjournment

Policies being prepared to boost national milk production

Livestock Development Deputy Minister H. R. Mithrapala, told Parliament yesterday, that policies are being prepared to boost the national milk production.

He made this observation in response to an adjournment motion moved by MP A H M Azwer.

A. H. M. Azewr (UPFA)

Milk is essential for the development of the human being. In order to create a healthy nation, we need to increase the milk production, catering to the local demand. The government under the instruction of President Mahinda Rajapaksa, has taken measures to improve the milk production.

Dilum Amunugama (UPFA):

It is necessary to provide due recognition to develop local milk production. The government has drawn a special plan to develop the livestock sector. Livestock development will be boosted under the Divi Neguma Programme.

Livestock Development Deputy Minister H. R. Mithrapala:

The local milk production is not sufficient to cater to local demands. The country spends Rs. 31 billion to import milk powder. President Mahinda Rajapaksa has proposed a special plan to increase local milk production. The certified price for purchasing one litre of milk had been increased up to Rs. 50, under the instructions of President Mahinda Rajapaksa. We expect to reach the target of producing 366 million litres of milk at the end of next year.

We hope to fulfill the 51 percent of local milk demand next year.

The House was adjourned until 9.30 am today.