News
PM pledges to reduce budget deficit from 10% to 4% by 2025
By Saman Indrajith
Prime Minister Mahinda Rajapaksa yesterday (12) asked Parliament to increase the borrowing limit by Rs.180 billion while amending the guarantee limit to 15 percent of the GDP as stated in the Fiscal Management (Responsibility) Act.
Presenting the Appropriation Bill 2020 to the House, the Premier said that the government aimed to reduce the income-expenditure gap to 4 percent of GDP by 2025 which now stood at nearly 10 percent and to reduce the overall debt to GDP to 75 percent of GDP within the next four years.
“It has become a national need to change our mindset to have faith in a production economy that supports exports and domestic production capabilities with fewer imports. A market economy that is dependent only on tea and apparels, with imports which are twice our exports without value additions to local resources and raw materials, will not pave the way for sustainable development. Development aspirations of the people could not be met depending only on import-led consumption and industrialisation without focus on food security and agro industrialisation and allied services based on agriculture, fisheries and livestock development. We have to not only convert a negative economy into a positive high economic growth rate of 6 percent, but such growth should result in the eradication of poverty.”
PM Rajapaksa said that the government had already spent around Rs.70,000 million for identifying COVID-19 patients, quarantine, random testing and related welfare activities.
“Hospital capacity for disease prevention, which was limited to Colombo, has now been increased to 17 hospitals in less than a year covering almost all parts of the country. The number of special care beds for COVID-19 patients has been increased to around 600. Daily PCR testing capacity for the diagnosis of the disease has been increased to an average of 7,500-10,000 tests a day with each test costing around Rs. 6,000, with the daily expenditure exceeding almost Rs. 50 million. The government also spends a sizable amount for the food and welfare of those under 14-day quarantine. In the meantime, an allowance of Rs.5, 000 each is granted to low income families adversely affected by the COVID-19 pandemic. Besides, the government is also bearing expenses related to the payment of the allowances of public servants who are engaged in those services in addition to other health-related expenditure.”
“From 2020 onwards annually, foreign debt servicing amounts to approximately USD 4,200 million. I am happy to report to this House that we have settled all debt obligations including the foreign currency debt dues for the year 2020,” he said.
The Premier said that he would present the proposals to create a modern economy in the country through ‘Vistas of Prosperity’ in his budget speech 2021 to be delivered on 17 Nov. 2020.
Power sector workers shouldn’t be granted year-end bonuses
Leader of the Eksath Janaraja Peramuna (EJP) and former Power Minister Patali Champika Ranawaka said that CEB workers shouldn’t be granted year end/Christmas bonuses as they had not contributed to the much favourable current financial status of that state-owned enterprise.
Ex-parliamentarian Ranawaka said that the CEB had earned massive profits solely by implementing extremely unfair tariff structure, therefore workers shouldn’t be paid bonuses.
The former Minister was addressing the media at the EJP Colombo office. Referring to official records, the EJP leader said that the CEB had earned a profit of Rs. 6161 mn in 2023 and also saved Rs. 36 bn. So far this year (January to November), the CEB had recorded Rs. 263 bn profit but the government continued to fleece consumers.
Ranawaka also questioned the failure on the part of the government to provide electricity consumers relief as decided by the Cabinet during the previous government that there would be quarterly revision of pricing formula.
Ranawaka said that the government should explain why it couldn’t decrease fuel prices by a significant amount. The NPP administration should at least admit that it couldn’t do away with the current unbearable tax regime. The ex-parliamentarian asked the NPP to acknowledge that the government feared collapse in case of abolition of heavy taxes on fuel.
The ex-Minister challenged the NPP to prove accusations that had been directed at ministers of previous governments without propagating allegations. According to Ranawaka, both diesel and petrol prices remained high as the government levied Rs 50 and 72 on diesel and petrol, respectively, in addition to 18% VAT (Value Added Tax).
Ranawaka pointed out that in addition to Ceypetco, IOC and Sinopec had been levying taxes heavily with diesel (Rs 88-94) and petrol (Rs 110-117) imports per litre (SF)
A person who had been apprehended by protesting Development Officers during a noisy demonstration outside the Education Ministry at Isurupaya and handed over to police was subsequently identified as a member of the Military Intelligence.
Police said that those demanding they be made permanent in the teaching service alleged that the apprehended man allegedly caused injuries to policemen deployed at the scene.
A Sub-Inspector of Police (SI) and two constables were injured. (HR)
Muhammathu Saali Naleem was sworn in as a member of the Tenth Parliament yesterday before Speaker Dr. Asoka Ranwala.
Following the oath taking, Naleem signed the Members’ Roll in the presence of Secretary General of Parliament, Kushani Rohanadeera, marking his formal induction into the legislative body. Naleem was appointed as a National List Member of Parliament, representing the Sri Lanka Muslim Congress (SLMC).
The inaugural session of the Tenth Parliament took place on November 21st, 2024, with members taking their oaths the following day. On November 22nd, the Election Commission issued a gazette notification confirming Naleem’s appointment to the National List of the SLMC, paving the way for his oath-taking ceremony yesterday.
Before entering Parliament, Naleem served as the Chairman of the Eravur Urban Council, bringing valuable local governance experience to his new role as a lawmaker.
Jaker, Taijul and Rana script Bangladesh’s first win in West Indies since 2009
Afghan women ‘banned from midwife courses’ in latest blow to rights
South Korea president backs down from martial law order after MPs vote to block it
-
News6 days agoDialog Smart Home Celebrates Continued Partnership as Gold Sponsor for Kadella 2024
-
Editorial4 days agoGreed for diplomatic appointments
-
Business7 days agoCurrent deflation situation would not adversely impact economy – CBSL Governor
-
News7 days agoFirst-ever floating solar photovoltaic power plants operational
-
News3 days agoAKD gladdens Ranil’s heart
-
Business3 days agoCentral Bank aware of upside and downside risks to its inflation projections
-
News6 days agoEx-Northern Governor: Deployments prerogative of armed forces
-
Editorial7 days agoShadow education in spotlight