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All smiles as the Finance Minister
shares a
joke with opposition MPs |
A budget to bite the dust
By Dilrukshi Handunnetti
Our Lobby Correspondent
Honest critics, and there's bound to be a
few, would agree that President Mahinda
Rajapakse presented a budget that was
reminiscent of Viscount Torrington, the much
disliked Governor of Ceylon from 1847-1850.
At the least, to speculate whether the Sri
Lankan President borrowed some of
Torrington's thinking when he got his budget
made.
For a budget that seemingly appears to offer
incentives to the local
producer/manufacturer and home industries,
there is a plethora of taxes that bears
comparison only with the dog and the road
tax among others, Torrington infamously
introduced. Only the coming months will
reveal the full impact of the tax burden
Rajapakse thrust upon a nation that is
already biting the dust.
From imposing the 10% levy currently charged
on mobile and wireless telephones on fixed
land connections to a 50% tax on
confectioneries to perfumes to textiles
imported, the President without qualms went
against the basic norms of a free economy.
It appears that the Head of State wishes to
choose the citizen's brand of textile or
perfume.
Leaving the taxing on 'luxury items' aside,
there are no real incentives or relief on
offer for the working class either, with a
paltry Rs.1000 allowance for the public
sector.
Lacked enthusiasm
The House too, strangely lacked the general
enthusiasm that a Presidential visit merits,
with the distinguished gallery significantly
empty and public galleries also not too
full. As the day's business commenced, TNA
Group Leader, R. Sampanthan stood up to make
a brief statement announcing their boycott.
He could not proceed beyond his first
sentence, "as a mark of protest and strong
condemnation of the genocide of Tamils..."
President Mahinda Rajapakse entered the
gallery just then, sharp at 1 pm, no
traditional valise but a simple yellow file
in hand to government applause and Aviation
Deputy Minister, Sarath Gunaratne hailing
him with a "Jaya Sri Janapathithumani!"
Rajapakse took off from where Sampanthan
left off. He lambasted the LTTE for
recruiting children and using women as human
bombs, and reminded the House that the LTTE
had eliminated national leaders both Sinhala
and Tamil, and if reflected upon well, the
cream of Tamil political leadership to
create a vacuum for its survival.
He even took the international community to
task, alleging that the conflict was
complicated by international intervention
and an ill-planned ceasefire that
strengthened the enemy.
Then from the usual litany of woes he moved
to the global economy that is impacting on
the entire world but strongly espoused the
cause of a national economy that is not
dependent on foreign borrowing or global
trends.
Predictably
As expected, his budget speech dedicated
sufficient time to the defence forces,
though offering them very little in terms of
benefits. Calling for the LTTE to lay down
arms or the government being compelled to
fight them to the bitter end, he said the
armed forces were moving towards Kilinochchi,
amidst thunderous government applause.
Showering praise, he noted that it was a
momentous occasion not just because they
were advancing but also because the troops
have not harmed a single civilian, despite
bad publicity given to the government
offensives.
"I call upon the LTTE to lay down arms and
surrender at this moment or else we will be
compelled to defeat and crush them," he
said, first in English, and for dramatic
effect, in Tamil.
Promising to liberate the Wanni soon and
establish civil administration after holding
elections in the war-ravaged north just as
it was done in the east, the President
rapped the liberal economy and blamed the
new economic order for wiping out local
industries, ignoring the local manufacturer
and creating an import dependent market.
Likewise, he critiqued the GSP + as a scheme
that was not real economic help but one
aimed at achieving political objectives.
An hour of that and the President was off to
hold his tea party amidst tight security. At
2.30 pm, the House resumed to hear the Chief Executive's revenue
proposals which sought to gently tie the
satakaya round the collective necks of the
people.
He proposed an increase of import duty on
wheat grain from 6% to 10% to 'discourage
the consumption of wheat flour' and a
special commodity levy from Rs.5 to Rs.15 on
imported milk powder to give the local milk
powder manufacturer a boost.
In the same breath, he said sugar cane and
sugar manufacturing industries deserved
support, and hence a special commodity levy
of Rs.16 on each kilogramme. Not sparing the
printing industry, the President proposed a
5% cess on paper imports and a 25% cess on
imported maize and animal feed, again to
give incentives to the local farmer.
Dashing all hopes of substantial price
reductions in fuel, Rajapakse played to the
gallery with token reductions as he
announced a reduction of Rs.30 on diesel,
Rs.15 on petrol and Rs.20 on kerosene when
global oil prices have more than halved.
As for the rest of the essentials, it now
seems that 'the only way is up.'
As for the tax regime, he announced a VAT
reduction of 3%, from 15% to 12% while VAT
on liquor and vehicles remain at 20%.
Charity through budget
Predictably, the President could not but
offer Rs.600 million to revive Mihin Lanka,
Sri Lanka's only budget airline and a
Rajapakse pet project that crash landed
within a year to make a comeback with the
generous President offering charity through
the budget.
To the laughter of the house, he proposed a
Rs.950 million allocation to construct
electric fences to minimise elephant human
conflicts, with government members asking
whether elephant conservation extended to
the two legged ones in opposition!
He called for the reservation of native
habitats of the adivasi communities, agro
exporting zones, e-villages and a knowledge
economy.
What some analysts called a budget aimed at
import substitution, preserving foreign
currency and promoting local industries,
detractors call it an empty budget with no
real relief for any sector.
It is indeed a good move if the country's
leadership wishes for a new economic order
that is self reliant and not dependent on
huge borrowing. But the contrast sadly comes
when he does dabble in high interest
commercial loans that are payable in bullet
form from foreign banks, giving lie to the
economic theory he propounds from the august
assembly as an annual chant.
There is also no denying that it is indeed
salutary to have local industries revived
and offered more incentives but then again,
it should be borne in mind that in a
globalised market, such individualistic
performances are somewhat minimised when
nations remain inter dependent, unless of
course, there is sufficient oil resources in
the backyard. Not even that seems to help
some oil rich economies.
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The Annual Pain
The security arrangements on budget
presentation day tend to cause general
heartache. Forget the poor man on the road,
waiting for a bus or the woman with a
respiratory disease who needs to be rushed
to hospital. All these are forgotten with a
special traffic snarl created despite the
Chief Executive being flown to the
parliament grounds. Forget too the general
mess that it creates besides the work hours
wasted by simply being caught in unmoving
traffic.
As for the journalists who have no choice
but to cover the event, it is no lesser
pain, hence the now popular reference to
budget day coverage as the 'Annual Pain.'
For starters, the journalists on Thursday
arrived at 9 am at the Information
Department only to depart almost at 11 am.
Many a journalist who honoured the rules and
arrived early had to be seated in a bus for
nearly two hours, sweating and fuming, once
they were security cleared by the
Presidential Security Division (PSD). Many
were wondering why the department butted in
to 'coordinate' when the PSD could have
handled security together with the
parliament police.
Abusive or intrusive
The physical inspection by the PSD is on an
average something people wish to forget. It
generally tends to border on the abusive or
intrusive. Many male and female journalists
were heard complaining that they felt
violated by the manner of checking.
This writer had to swallow a Menthos out of
a whole packet just to prove that it was not
poisonous (and not cyanide in tablet form).
After checking the bag, this meant going
through each business card with meticulous
care and finally settling on the metered
dose inhalant (MDI). After a through
inspection, this writer was told to use the
inhaler, something that is done only under a
doctor's instructions and should not be used
merely to offer a security type a live demo.
Other women colleagues had themselves body
checked that left them embarrassed and
unwilling to share their experiences, while
most vowed never to cover an event attended
by the President, just to be spared of the
painful body searches.
In this day and age, it is hoped that an
extravagant government often selling the
armed forces could invest some money on
equipment that could spare the indignity of
being frisked by hand.
For example, journalists regularly cover the
UN General Assembly sessions. Needless to
say that the all-important summit merits
thorough security with scores of journalists
in attendance. But once their equipment is
checked, they are allowed in with their
electronics with no restriction on freedom
of movement or escorts within the building.
An example
The world's biggest media event so far held,
the 2002 World Summit on Sustainable
Development (WSSD) in Johannesburg drew
50,000 journalists, no less. Journalists
were naturally allowed all of their
electronics, and this writer recalls getting
into a lift only to find Colin Powell and
the US delegation there!
At WSSD, there were over 100 heads of state
together with their high-powered
delegations. Journalists were seen walking
into each and every room, with no frisking.
Once journalists were checked and allowed
entry into the main premises, the security
trusted their system and did not penalise
others.
Same with anyone going to Capitol Hill in
the US, the White House or the UN building.
Though some areas were restricted for
photographs such as the Security Council
conference room, the UN security does not
freak out merely because journalists carry
their cameras and mobile telephones.
And closer to home, nobody stops a person
wanting to be photographed in front of
Rashtapathi Bhavan or Sansad Bhavan in India
or for all his despotic legacy, in front of
the former Maldivian President, Maumoon
Abdul Gayoom's presidential office.
In this Stone Age exercise of body searching
Sri Lankan journalists, most of them regular
parliament reporters, things are
significantly different. Once checked, they
are herded like cattle into a bus to kick
their heels and wait for hours. When the bus
moves finally, it takes circuitous routes
thanks to a misguided traffic police escort.
The duo kept losing their way making the bus
drivers struggle to manoeuvre the massive
buses on narrow roads.
Mild conflict
What is worse, in the age of technology,
journalists were denied their mobile
telephones, cutting off all communication
for a full day. Once taken to parliament,
the parliament police naturally came into
mild conflict with the PSD and the
Information Department, as journalists were
made to gather before the Members' Entrance,
effectively blocking the parliamentarians.
Finally, it boils down to the question of
trusting one's own system and having the
right equipment to make it work. While
journalists do appreciate the country's
security concerns and do not oppose rigorous
checking, there is no need to subject them
to undignified frisking.
And not to mention the thousands who were
denied freedom of movement and had to stand
by the roadsides, bus halts or be confined
to their own vehicles for hours on end in
maddening traffic throughout the day for a
President who does not travel by road.
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Budget 2009: The good, the bad, the ugly
By Mandana Ismail Abeywickrema
Members of the ruling party last week
hailed Budget 2009 as one that addressed
issues faced by people of all walks of
life and aimed at improving the national
economy while opposition parties like
the UNP and the JVP charged that the
budget had failed to meet the
expectations of the people.
Soon after the presentation of the
budget, Deputy Finance Minister Ranjith
Siyambalapitiya said that given the
global economic crisis, the government
had managed to present a budget that
addressed issues related to many areas.
He said the budget proposals have looked
into the issues faced by people of all
walks of life and was aimed at steering
the country towards long-term
development.
He added that 2009 would be an
economically difficult year given the
current global trends, but expressed
confidence that the government would be
able to address many issues through its
economic proposals for next year.
Developing the north
Senior Presidential Advisor Basil
Rajapakse meanwhile said the budget
while promoting local industries was
also geared towards the development of
the north, which was long denied.
"Despite the global economic crisis, the
budget has provided benefits to the
agriculture and fisheries sectors," he
said.
Rajapakse added that the government was
not dependent on foreign funds, but
relied mainly on funds received through
the development of local industries.
Government ally, the JHU said the budget
proposals for 2009 were commendable
under the present circumstances.
JHU Parliamentary Group Leader, Ven.
Athuraliye Rathana Thero said the
government was moving in the right
direction in working to uplift the
national economy.
"The fertiliser subsidy given to the
agriculture sector is being continued,
which is good," he said.
Ven. Rathana Thero also said some of the
party pre-budget proposals on the
education sector have been included in
the President's budget proposals.
He added that issues faced by the people
have been addressed.
"Oil prices have been reduced and
pensions have been increased," he said.
Ven. Rathana Thero also commended the
government's decision to increase
defence expenditure for next year in a
bid to continue with its war.
Newly appointed national list MP and
TMVP Leader, Vinayagamoorthi
Muralitharan alias Karuna Amman said the
government had presented a 'good
budget.'
He said that allocations have been made
for the development of the Eastern
Province.
"Allocations have been made to develop
fishing and farming in the east which
would help livelihood development in the
province," he said.
While members of the government and its
allies commended the budget proposals,
opposition members charged the
government's budget for 2009 was
misleading the public by not granting
any real benefits to the consumers.
UNP Parliamentarian Ravi Karunanayake
said the budget was nothing but a fraud
as it had not offered any real benefits
to the consumers.
He said public servants have been
offered only a small increase in the
cost of living allowance and added that
the country is being pushed further into
debt by the 2009 budget proposals.
Reduce fuel prices further
JVP Parliamentary Group Leader Anura
Dissanayake said the government could
have reduced petrol prices by Rs.72 a
litre and that the price of diesel could
have been reduced by Rs.50 a litre.
He said that financial allocations for
25 ministries have been cut down in the
budget for 2009.
He also said the salaries of the public
sector workers have not been increased
and instead only a Rs.1,000 increase has
been made to the cost of living
allowance.
He added the public servants numbering
1.2 million have been allotted only
Rs.12,000 million, while the President
had increased allocations for himself by
Rs.1,200 million.
"The estate sector employees who face
great difficulties have been ignored and
no real relief has been given to the
private sector workers as well,"
Dissanayake said.
JVP defector and leader of the newly
formed National Freedom Front (NFF),
Wimal Weerawansa said the government had
made an effort to meet the needs of the
people amidst global economic
constraints. He said efforts have been
made to uplift the national economy by
moving away from the neo-liberal
policies and privatisation.
He added that it was important to
remember that the budget for 2009 was
presented at a time the government is
fighting a war. |