UPFA to probe budget setbacks in councils

A UPFA committee overlooking local councils will probe the recent defeats of budgets in six local councils controlled by the alliance, Minister C. B. Ratnayake, a member of the committee, said.

He said the defeat of the budgets pointed to a power struggle among councillors for the chairman’s post with some members putting their personal interests before party interests.

Mr. Ratnayake said all UPFA councillors had been clearly told that they should not vote against the budget on account of personal agendas.

He said the committee would start the probe tomorrow.

Political parties rejected the government's claims that the November 21 Budget targeted development, saying it lacked both vision and compassion for ordinary people.

“The 2014 Budget is catered to cover the cost of CHOGM 2013 and also to fund casinos," Democratic National Alliance parliamentarian Sunil Handunnetti said.

The interest to be paid on government loans equalled annual revenue and the government would not have sufficient funds to meet its other expenditure, he charged.

United National Party (UNP), MP Sajith Premadasa was no less scathing. “The Budget seems to have its foundation laid on quicksand rather than sound economic fundamentals because the indirect taxes levied have magnified the detrimental impact on people,” he said.

“The government has slashed the budget deficit by depriving the rural people of their samurdhi benefits. The people will surely feel the Budget’s pinch. It will not put a smile on their faces.”

UNP parliamentarian Harin Fernando said the Budget held false promises.

“The Rs 1200 provided as a subsidy for the state sector employees amounts to an average of Rs 40 per day. Even a plain tea would cost at least Rs 25, so this won’t help them at all,” he said.

“Also, only 1.2 to 1.3 million people are employed in the state sector and it is only they who receive the subsidy. The majority of the work population, amounting to roughly 6.8 million people, are employed in the private sector - there is no financial relief provided for these people.”

“Further, this Budget does not mention anything about short-term investments that could reduce the cost of living. Rather, it only focuses on long-term investments which would very well increase the cost of living.”

Jathika Hela Urumaya MP Ven. Athuraliye Rathana Thero said development projects alone would not decide the economy’s path. "The Budget is unsuccessful for there is no economic knowledge in it," he said. He alleged that the government was not driving the country with a vision.

Democratic People’s Front leader Mano Ganesan said the Budget promised 50,000 flats for plantation workers but this was not workable in the hill country.

“Our demand is that these workers each be provided with 20 perches of land so that they can build their own houses,” Mr Ganesan said.

“Also, the Rs 1200 allowance won’t be of use to these people because there will be an Rs 3000 increase in the cost of living."

Private Transport Services Minister C.B. Rathnayake said this was a Budget that targeted development.

“This Budget is aimed at strengthening small industries and is quite capable of improving the country’s economy in the near future,” he said.

“We look in terms of a long-term development project and that’s why we look to long-term investments.”

Mr Premadasa, however, said the “draconian” Budget was solely aimed at fulfilling the aspirations of the super-rich while penalising the poor.