Columns - Lobby

Economy forgotten in Fonseka fireworks

By Chandani Kirinde, Our Lobby Correspondent

When a Vote-on-Account or a mini-budget is presented, it is expected that MPs on both sides would launch a war of words on the state of the economy. But this week, when the Government presented the Vote-on-Account, it was the trials and tribulations that Chief of Defence Staff Sarath Fonseka faced during his visit to the United States that took up much of the time and interest of the House.

Even though a possible entry into politics by the former Army Commander was largely confined to rumours at this stage, the UNP and the JVP devoted much of their time discussing the “Fonseka” saga that unfolded in the US and accused the Government of mishandling the situation.

The Government on its part did its best at damage control with Foreign Minister Rohitha Bogollagama attributing credit to the sound foreign policy of the Government for aborting a move by the US Department of Homeland Security to question the General and bring him home under the auspices of the Sri Lanka Embassy in Washington.

The issue was first raised by the JVP’s Parliamentary group leader, Anura Kumara Dissanayake, who said any attempt to question General Fonseka by a foreign nation was a serious matter and a challenge to the country’s sovereignty and asked what measures the Government had taken to resolve the issue.
The Foreign Minister explained the sequence of events that had taken place since General Fonseka made a telephone call to Defence Secretary Gotabhaya Rajapaksa to tell him of the US moves to question him. He also said the Government was expecting a favourable result from its diplomatic initiatives.

But the Government in general and the minister in particular were pushed into an embarrassing situation, when by mid day the same day, the JVP’s Kandy district MP, Samantha Widyaratna, informed the House that General Fonseka had boarded a flight from Washington and was headed for Sri Lanka.

Not to be outdone by the JVP in raking in all the attention on the “Fonseka” matter, the National Freedom Front (NFF) led by JVP breakaway MP Wimal Weerawansa too introduced an adjournment motion on the same issue Tuesday evening.

Mr. Weerawansa who seconded the motion moved by NFF MP Mohamed Muzamil said the Government had taken the best possible action that could be expected in such a situation and lambasted certain bankrupt political parties for trying to make political capital of the matter.

“This is the worst kind of treachery to try and take political advantage of this situation. There are sinister international forces which are in despair about the defeat of the LTTE. We as a nation need to be united to fight them like we did when we were fighting the LTTE,” he said.

While the JVP took up the stance that no foreign force should be allowed to question any Sri Lankan, the UNP was more keen to blame the Government than state its position with regard to the US action.

Kandy district UNP MP Lakshman Kiriella said the Government had cancelled an official trip that was scheduled for General Fonseka and that proper advice was not given to him prior to his travel because of a rift between the General and the Government.

The day ended with the Foreign Minister informing the House that General Fonseka had indeed left the US and was returning home. But the matter did not end there and most UNP and JVP MPs brought up the issue during various debates during the week.

That aside the Government had a comfortable victory when the vote on the Vote-on-Account which it presented instead of the annual Budget in view of a general election was taken up on Thursday.

The Government secured 125 votes as against 78 by the combined opposition which included the UNP, the JVP, the TNA and the SLMC.

With talk of an early presidential or general election, Leader of the House Nimal Sirirpala de Silva said the Government was not afraid to face any election. “Any superman can come forward but we are not afraid. The people of this country know about the work done by this Government,” he said.

The surprise visit paid by President Mahinda Rajapaksa to Parliament on Friday led to further speculation that the term of the current Parliament may end before its term expires in April next year.

The following are excerpts from speeches made in Parliament this week.

Country moving towards rapid growth

Public Administration and Home Affairs Minister and Deputy Finance Minister Sarath Amunugama:

Despite the negative effects of the global economic down-turn, Sri Lanka has achieved a four percent economic growth while a number of other countries recorded only a zero growth rate for the current year.

The per capita income of the country has increased up to US$ 2,000 which was only US$ 800 a few years ago. We are in a strong position to target a six percent growth rate in the coming year.

We can actually name year 2010 as the year of economic development. Our nation’s economy was badly battered by a three-decade-long civil war. Now the country is totally free once again and marching towards rapid development. With the IMF loan facility, we are confident of achieving higher economic growth rates in agricultural, industrial and service sectors.

Vote-on-Account a cover for widening budget deficit

UNP Colombo district MP Ravi Karunanayake:

The budget deficit for 2009 would have been 11 percent and not 6.5 percent. This is why the government did not present a budget and instead chose to present a Vote-on-Account.

According to the Letter of Intent signed with the IMF for the US$ 2.5 billion standby loan, the Government pledged to maintain the 2009 budget deficit at 7 percent, and bring this down to 6 percented for 2010. According to the 2009 budget (present last year), projected income was Rs. 855 billion and projected expenditure was Rs. 1550 billion.

This figure indicates a budget deficit of 6.5 percent for 2009. But in reality for 2009, the government’s income has been Rs. 720 billion and expenditure Rs. 1660 billion.

Additionally 25 supplementary estimates amounting to Rs. 135 billion were passed in Parliament for 2009. All this add up to a budget deficit for 2009 at around 11 percent.

President can bring about national unity

UNP National List MP K.N. Choksy:

To my mind, both as a citizen and a former finance minister, it would be inappropriate to present a budget and bind, possibly, a new government to it for the greater part of next year.

Looked at from this point of view, a Vote-on-Account up to the end of the current Parliament is democratic and fair, leaving it open to the government elected at the next general elections to formulate its own financial programme of revenue raising, financial investment and economic development. However, the financial content of the present Vote-on-Account is open to scrutiny by Parliament.

President Mahinda Rajapaksa had benefited the nation by wiping out terrorism and restoring economic progress. There is one further important national task left to him, which I am confident he can achieve.

That is to establish ethnic understanding and amity between the major communities. Under his leadership, he should be able to achieve this directly by means of a political settlement with Tamil parties in Parliament and, thereafter, present the outcome for parliamentary acceptance. Then the executive presidency would have proved its full worth.

Rs. 19m a day for President; no relief for people

JVP Colombo district MP Sunil Handunnetti:

According to the estimates of the Vote-on-Account, Rs. 19 million would be spent per day to maintain the Office of the President. The capital expenditure allocated to the President is Rs. 1,400 million -- meaning that Rs. 19.1 million would be spent a day.

Some ministries have not been allocated sufficient funds to function for even a month.

After the end of the war, the people were expecting the government to present a budget for 2010 that contained tax concessions, wage hikes and a strategy to reduce the cost of living. Through a Vote-on-Account, the people will not get any relief.

With the end of the war, the people were expecting some relief by way of the exemption of the defence levy and other taxes. This is a right of the people.

 
Top to the page  |  E-mail  |  views[1]
 
Other Columns
Political Column
Fonseka: A tactical withdrawal, what next?
5th Column
With bated breath we await his ‘crowning’
The Economic Analysis
The economy minus GSP Plus
Lobby
Economy forgotten in Fonseka fireworks
Focus on Rights
Thoughts on the drowning of one man

 
Reproduction of articles permitted when used without any alterations to contents and a link to the source page.
© Copyright 2009 | Wijeya Newspapers Ltd.Colombo. Sri Lanka. All Rights Reserved.| Site best viewed in IE ver 6.0 @ 1024 x 768 resolution