| Votes of the Ministry of Finance and
Planning 1999 will be a
difficult year for the country economically and
financially
- Ronnie
House met at 9.30
a.m. Friday, December 16, 1998 with Speaker K. B.
Ratnayake in the Chair.
After the Speaker's announcement and
Ministers answered Oral Questions. House met in
Committee, to discuss the votes of the Ministry of
Finance and Planning.
Ronnie de Mel (UNP - Matara
District) moved a cut of Rs. 10 from the votes
of the Ministry of Finance and Planning.
He said: The year 1999 will be a
difficult year for the country economically and
financially.
The Asian Bank, according to reports,
has predicted a 6.2 percent growth in the economy of Sri
Lanka in 1999.
This may be true because the UNP in
1977 changed the country's shattered economy and put her
on a more viable course.
But I would insist that the predictions
of both Asian Development Bank and the International
Monetary Fund (IMF) are not sacrosanct. They are not
always correct. All their predictions for Thailand,
Malaysia, Singapore and South Korea proved incorrect.
Sri Lanka is still not out of the
woods. Our economy is still susceptible.
Rubber prices has fallen but tea, the
second highest foreign exchange earner has managed to
service.
The country's foreign reserve has
fallen to the level to two or three months imports.
Sri Lanka must soon either devalue its
currency judicially or increase interest rate or effect
both.
If the government reduced the price of
petrol and diesel as the international prices of these
commodities have gone down. Everything would have gone
down in price from rice, vegetables while the costs of
transport too would have gone down. You have not given
attention to this issue.
The IMF in its latest report has
recommended strong fiscal measures to retain what the
country has so far achieved.
The government has failed to obtain a
cent from IMF during the last four years. The reason is
the IMF is not still satisfied with measures taken by
your government.
According to the IMF the Government is
undermining both education and health. This is what the
UNP too say. This was the subject of talk during the
recent Paris meeting.
IMF also has referred to areas which
need strong action. The report has also pointed out the
need to maintain capital expenditure at budgeted levels.
Among the recommendation of the IMF freezing of Samurdhi
expenditure and reduction of the number of Samurdhi
Animaters.
We re-capitalised both state banks
before we went out of power.
The IMF said 25 percent of the Sri
Lankan population was still below poverty line despite
Samurdhi. It has pointed out the neglect of health and
educational sectors and the environmental problems
created by the denudation of forest cover in the water
shed areas.
The IMF said the Budget for 1999 was a
set-back. The IMF's resident representative said this
clearly. He made very adverse remarks about the Budget.
Entire tax system has become a mass of
confusion to the tax payer under your government. The GST
has become the most hated tax in the country. Those who
introduced the law had been completely unaware of the tax
invoice.
We are now charging taxes and taxes
upon taxes. National Defence Levy has been increased to
5.5 percent. This is tax upon tax and tax breeding tax.
Some of our financial institutions are
heading for trouble.
Bank should have sufficient
reservations to meet bad debts. I drew your attention to
developments at the Merchant Bank but this was ignored.
The consultative committee which should
meet at least once a month has not met for six months.
The ministry has not respected the laws of the country.
(Continued
Tomorrow)
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