Joint Opposition demands immediate Interim Budget

MP Dinesh Gunawardane gestures during the Joint Opposition press conference yesterday. MP Bandula Gunawardane is also 

present - Pic by Shehan Gunasekara

By Chamodi Gunawardana

The Joint Opposition yesterday demanded that the Government pass an interim Budget to correct what it termed an illegal implementation of VAT without the approval of Parliament. 

Joint opposition leader MP Dinesh Gunawardena said he has already written to President Maithripala Sirisena and Prime Minister Ranil Wickremesinghe stressing the need to pass an interim budget as soon as possible. 

“According to Article No.148 of the Constitution, control over Government finance is vested with Parliament. Therefore, no tax or other charge can be levied without the approval of Parliament. It is required for any amendment to the estimates to be passed by the House,” the letter said.

Speaking at a media briefing, Gunawardena claimed the Government has no right to adopt any policy outside of the Appropriation Bill tabled in Parliament ahead of the 2016 Budget last year.  

“In the Appropriation Bill it has been very clearly stated that Value Added Tax (VAT) would be 11% and if the Government applies more than that without Cabinet and Parliament approval it is illegal and unethical,” he charged.

Gunawardena further alleged the Government had still not revealed the agreement it had come to with the International Monetary Fund (IMF) to obtain a $ 1.5 billion agreement.

“We believe the Government has agreed to all IMF recommendations to receive the loan, but we still do not know what the implied terms of the agreement are. We believe VAT hike was one of IMF recommendations,” he said. 

Gunawardena alleged keeping ‘secret agendas’ with the IMF was a violation of Parliamentary tradition.

Commenting on the debt levels of the country, MP Bandula Gunawardena charged the United National Party (UNP) has driven the country to more losses.

“The period of 1977-94 the country was ruled by the UNP Government and the state debt burden was increased by 2098%. During the period 1995-2014 under the administration of former Presidents Chandrika Kumaratunga and Mahinda Rajapaksa the debt increase dropped to 1070%,” he stated.

Praising the Rajapaksa regime, Gunawardena said the best debt management in history of 228% was marked under the previous Government between 2005 and 2014.