Budget will empower the masses: Faiszer

Following is the address on Minister of Provincial Councils and Local Government Faiszer Mustapha in Parliament

First of all I would like to thank this council for giving me the chance for the Budget debate. I see this Budget as a result of the victory gained by the President Maithripala Sirisena on 8 January. Some people complain to us that the Government has not done a thing within the last 10 months. But I would like to say that many economic, social, and constitutional changes have been taken place under the governance of Maithripala Sirisena.

We have won the war. But I would like to ask from this honourable assembly, have we looked forward to combine the minds of the victimised people from north and south? And is the physical development of the country a real development? We have made a huge development in the north, after the war. But we should admit that we have not yet won the hearts of the northern people.

Also we should admit that the President Maithripala Sirisena is taking steps to create a real national thought in the country by combining the minds of the people in north and south.

We all should admit that after the Constitution in 1978, none of the Government rulers confirmed an independent Judiciary or the democracy, instead they tried to enhance their power.

Establishment of an Independent Commission by minimising the powers of the Executive Presidency, was the promise given to the people by the President Maithripala Sirisena.

None of the rulers for the past 30 years did such a task. Accordingly I would like to point you out that the President Maithripala Sirisena has done something in his rule of 10 months that no any other rulers did, for the past 30 years.

From the time of independence budgets have been presented by the governing party that is either the united national party or SLFP.

The election of President Maithripala Sirisena is where the General Secretary of the SLFP challenges the incumbent the President and the leader of SLFP as the General Secretary of the SLFP and defeats him with the support of all progressive parties which included the UNP a section of the SLFP and many others. 

The President pledged to the nation that he will move away from petty politics and put the nation before self or party and steer the country for two years forming a national government consisting of UNP and the SLFP.

This Budget is a continuation of the pledge where the Cabinet consists of ministers of the UNP and the SLFP to steer the Government. 

There are ideological deference between us and the UNP. However to steer this pledge we act collectively presenting this Budget. 

Today we as a country we cannot live in isolation. If we are to reduce our foreign debt and increase foreign investments we have to live in harmony with the international community and attract foreign investments.

Foreign entities to engage in business need land. Land is the only commodity no foreigner however big or small can take it away. Therefore if a foreigner builds a 50-storey building the net benefit is for the country.    

We should prevent foreigners from obtaining absolute title and or pushing land prices to make it prohibited for average Sri Lankan to purchase land. The reduction of the 15% tax on projects by foreigners would be very positive in encouraging foreign investments to this country as the said levy of 15% as the former Deputy Minister of Investment and Promotions was seen at that time by many foreigners as draconian towards the investment climate of this country. 

This budget is based on the following promises:

a. Generating one million employment opportunities 

b. Enhancing income levels 

c. Development of rural economies

d. Ensuring land ownership to rural and estate sector, the middle class and government employees 

e. Creating a wide and strong middle class.

The basic prices of essentials has been reduced. The tax man will not be at your door step until you reach the threshold of the 2.4 million which is a major incentive to earn.

The common tax slab of 15% takes us away from the Robin Hood theory. 

Corporate tax been brought down could ignite the growth of the private sector. 

The financial sector has been seen as been making greater profit compared to other sectors of the economy.

The increase in corporate taxes in that sector if the tax burden is not shifted by the banks to its customers which would be a positive. Therefore I request the appropriate steps to prevent banks shifting their tax liability to their customers.  

The request made by the Women Chambers of Commerce at 5% of the loan portfolio of SME projects been granted to women be included in the Budget is a very positive factor as women entrepreneurship is an integral factor in a vibrant economy.

I would request that the decision with regard to the cancelation of permits for the Government servants and doctors to be reconsidered or an alternative mechanism to address their need of private transportation been met.  

As a lawyer I have seen entrepreneurs taking benefits under the shield of the limited liability concept by reducing their risk and extending the business skills towards the business growth. I have seen companies with a share capital of next to nothing growing in to a big corporate entity. Therefore I see the annual payment of Rs. 60,000 by the private companies be an impediment and thus that said proposal be reconsidered. Companies going back to sole proprietorship or partnership is not conducive to business.

Dealing with my Ministry the Ministry of Provincial Councils and Local Governments the due recognition been given to the finance commission whereby the allocations are made in consultation with the finance commission which is keeping line with the Constitution. In previous years monies where allocated directly to the relevant provinces. This created difficulties in accountability of finances by my Ministry to Parliament and the process adopted in this Budget will further strengthen my accountability to the parliament with regard to provinces.   

I’m very confident that this Budget will empower the masses of this country for greater prosperity. I thank the efforts of the President, the Prime Minister, and the untiring efforts of Finance Minister Ravi Karunanayake in presenting this Budget which I am sure will stimulate the economy and giving us all greater prosperity.

Thank you.