JVP Colombo District member Sunil Handunnetti said during the budget debate yesterday that they would oppose the budget as it had failed to announce strategies that would make import substitution practical. But breakaway NFF parliamentary group leader Wimal Weerawansa said his group would support the budget as the proposals outlined in it sought to strengthen local economic enterprise while continuing to defeat separatist terrorism.

Minister of Trade Consumer Affairs and Cooperatives Bandula Gunawardena said that prices of imported milk powder would not increase though the government had imposed a cess of 15 rupees per kilogram as there were import duty concessions given to the importers. Should the importers decide to increase the prices the Consumer Protection Authority would take to legal action against offenders.

Though the opposition said the foreign debt had increased during the last few years the highest foreign debt of 292 percent was recorded in 2002. It had been decreased to 152 percent by 2007 and would be further decreased in the current year and the coming few years, the minister said.

The budget deficit too had been reduced during the last three years and there was a current account deficit of 36 billion rupees this year. The government had brought down the budget deficit while continuing large development programmes like Upper Kotmale and Norochcholai power plant projects and a number of irrigation and infrastructure development programmes, said.

National Freedom Front group leader Wimal Weerawansa said the budget rejected the neo-liberal economic polices of the previous UNP regime that sold the public enterprises and assets to find funds for their budget. Even the government of Chandrika Kumaratunga sold the largest number of public enterprises than during the 17 years of UNP governments. The present budget had given incentives to indigenous enterprises although the bureaucracy and certain politicians who were opposed to indigenous enterprise may not allow the budget proposals to go in the correct direction. Therefore it would be important to make the proposals practical realities, Weerawansa said.

Today’s war against separatist terrorists and reviving indigenous enterprise was at a crucial point. The NFF would support the budget as the proposals were in the right direction.

Minister of Fisheries Felix Perera said the budget presented by President Mahinda Rajapaksa in the background of a global economic downturn emphasized on reviving indigenous enterprise in agriculture, fisheries local industry and milk production to withstand the international economic recession.

The UNP on the other hand relied completely on the private sector and foreign investment and in fact they seemed to worship the private sector. Though the private sector was not discouraged by the President he did not privatize a single public sector enterprise but took action to develop them. The farmer was really the king today as the government absorbed over 90 percent of the cost of fertilizer and the farmer was able to get a good price for his paddy and other crops. The last provincial council election demonstrated that the farmers of Anuradhapura and Polonnaruwa had endorsed the policies of the President. For example in the Medirigiriya electorate the government won by a majority of 800 votes during the last general election was won by the government with an 8000 majority during the provincial council election.

UNP Kandy District member Tissa Attanayake said the budget was labelled pro-people and patriotic but it had let down the public helping only limited group of people. The increase of import duty on wheat flour would increase the prices of bread and all flour based foods. The tax on paper imports would increase the prices of all paper products from the exercise books to newspapers. The local production of milk was only 25 percent of the national demand and the balance 75 percent imported could not be reduced in a short period and the increase of the tax from 5 to 15 percent would also increase the prices of powdered milk. Though the government presented its annual budget for 2008 it had come back to parliament with supplementary estimates on 17 occasions to raise further funds for expenditure. The increased expenditure was a burden on the people who paid taxes and the government printed money to bridge the budget deficit.

Suresh Premachandran (TNA) said the government said it had won the war but had allocated 177 billion rupees for defence expenditure. If the war had been won why was such a large sum of money allocated for defence? There were about 20,000 families in the North who were displaced. The government was committing genocide and neglecting the people of the north.