Economic benefits yet to trickle down to the masses – Senior Minister D.E.W. Gunasekera
Expressing concern over the state of the government revenue, Senior Minister and Communist Party leader D.E.W. Gunasekera told a packed audience of members of diplomatic corps, foreign donor agencies senior officials business community and the media that the impressive economic data of the country presented by Lankan authorities and foreign agencies does not reflect in the lives of ordinary people and workers.
Addressing the launching ceremony of the Finance Ministry 2012 annual report on Friday in Colombo, he noted that the economic benefits are yet to trickle down to ordinary citizens and working people.
“There is something wrong in these official figures when you look at the real life of the people,” he said adding that he sometimes couldn’t believe the data presented in annual reports of state institutions when he was probing their activities as the Chairman of Committee on Public Enterprises (COPE).
He disclosed that government revenue has fallen to 13 percent of GDP in 2012 from 24 per cent in 1978.
According to the Minister, the current state income is ‘hardly sufficient’ to pay salaries of 1.4 million public sector workers and 510,000 pensioners, and pay interest on loans and pay subsidies.
He stressed the need to revitalize the three revenue collection houses – Inland Revenue, Customs and Excise Department – and further broad base the tax base.
Mr. Gunasekera said that he cannot understand as to why the GDP and per capita income increases were not being reflected in state revenue.
He disclosed that the COPE report made far reaching recommendations including the need to introduce new accounting procedures and financial reporting aimed at enhancing the financial discipline of the public enterprises this month.
Of the 41 major state institutions, only 11 are still making losses including the CEB, CPC, Sri Lankan Airlines and Mihin Air, he said.
In his speech, President Mahinda Rajapaksa disclosed that the country will enter into a free trade agreement with China shortly paving the way for local exporters to enter the vast market.
“In the meantime we are discouraging imports of food and other items that could be produced in the island,” he said adding that he had learnt many lessons during previous regimes which curtailed economic activity putting various barriers including import restrictions and barriers on transportation of rice, etc.
Those days even eating rice had been restricted for two days per week, he said adding that he had gained many political experiences during his 43 year-old political career and that is why he has removed barriers and made finance ministry activities more transparent.
Outlining the 2012 annual report of the Finance Ministry, Treasury Secretary Dr. P. B. Jayasundera revealed that action has been taken to secure economic stability despite a global economic crisis, drought and floods experienced in the country.
A sum of Rs 4 billion was spent to rehabilitate the irrigation system and to improve infrastructures facilities including roads electricity in rural areas.
The Treasury has injected money to maintain the CEB, CPC, Sri Lankan Airlines and Mihin Air and now these institutions should begin paying dividends to the Treasury, he emphasized.
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