Budget 2021: Need for ‘National Reading’

Mahinda Rajapaksa, the Prime Minister and Minister of Finance, presented the nation’s 75th Budget, for the Year 2021, to Parliament, last week. Now we can witness different interpretations of the budget from economists, the business community, academics and representatives of civil society. Some argue, with their expertise in economics, and some can be seen with their understanding of society. Moreover, it can be seen that certain elements read this budget with their political ideology. Anyway, this is the time that Sri Lanka needs “National Reading” of the Budget.

This Budget is unique for a few reasons. First we need to “read” this by focusing on the current pandemic situation. The International Monetary Fund (IMF) forecasts Sri Lanka’s economy to shrink 4.6% this Year. This can be seen as the same as other countries. In May 2020, the Asian Development Bank announced that COVID‐19 could cost the global economy between $5.8 and $8.8 trillion.

And also, we should not forget the “Easter Sunday attack” which severely affected the economy of the country last year. Refer below for ‘’Reuters reports” on 18 September 2019.

“Sri Lanka’s economy grew at its slowest pace, in more than five years from April to June, government data showed on Wednesday, as the Easter Sunday bomb attacks that killed over 250 people hit the island nation’s fastest-growing tourism sector. Accommodation, food and beverage service activities, which have been rapidly growing due to high tourist influx, fell 9.9% in the June quarter, compared to the same period a year ago.”

So, it is clear that the Sri Lankan economy is experiencing a “double blow” unlike other countries. There is a need for people to understand this situation. This is the time when people need to have a “National Reading” for the budget. Interestingly Dr. W.A Wijewardena, former Deputy Governor of the Central Bank of SriLanka, has vividly elaborated this context in his article titled “Budget 2021: Gota’s Third War, but forgive me, it is our war, too”. Accordingly, Wijewardena argued that ‘’Sri Lanka is at war today and it is Gota’s Third War. But it is not his war alone; it is our war too. We all should fight it with vigour, rigor, perseverance, and determination. The whole nation should help Gota by working harder, two or three times harder than before, to take the country out of the present economic malaise. That is the only source of progress. Without that, the Budget 2021 will only be another document with no practical relevance.” Hence there is a need for everyone to understand the real situation of the country.

People in this country need to understand this crisis. We did not expect either the Easter Sunday attack or Covid-19, which have done much damage to people and to the country as a whole. Now the time has come to get together as one nation and work towards the betterment of the country. Hence there is a need for everyone to “read” this Budget 2021, with the interest of the nation.

Professor NALIN ABEYSEKERA