COLOMBO: Sri Lanka borrows Rs. 85 for every Rs. 100 spent on development, while the Government has failed to strengthen the economy despite the funds available to it, Sri Lanka Podujana Peramuna (SLPP) National Organizer and MP Namal Rajapaksa said.
Addressing Parliament today during the Budget debate, he challenged the Government’s claims of financial management, saying that much of the money spent on development projects, including roads, highways, bridges and schools, came from borrowing.
“For every Rs. 100 you boast about spending on development, you borrow Rs. 85. Another Rs. 3 comes as foreign aid. The balance is met through State revenue,” he said.
Rajapaksa also criticised the Government’s economic performance, claiming that economic growth had declined from 5.3% when it assumed office to 4.2% under its third Budget.
He said inflation, which had been negative when the Government took office, had risen to 8.3%, while the prices of essential commodities had increased by at least 10%. He also pointed out that the US dollar had risen from Rs. 295 to Rs. 332.
While acknowledging global challenges, including ongoing wars, he said the Government remained responsible for managing the country’s economy.
He accused the Government of following a tax policy that benefited the wealthy while placing a greater burden on poorer sections of society.
Although the Government had removed VAT from school textbooks, he questioned why similar relief had not been extended to essential food items, milk powder and medicines.
He also questioned the decision to provide free smart meters to consumers using more than 180 electricity units, saying the Government should instead focus on reducing electricity costs for industries, entrepreneurs and low-income households.
Rajapaksa further challenged the Government to present a clear programme to attract new foreign investors rather than repeatedly discussing whether to remain under the International Monetary Fund (IMF) programme.
He said Sri Lanka needed to improve its investment climate and strengthen existing institutions instead of establishing new committees.
Referring to foreign investment during the 2005–2015 period, he said Sri Lanka had attracted a large number of investors under the existing system.
However, he alleged that the current Government treated investors with suspicion and viewed officials who expedited investment approvals as corrupt.
“Do not look at every investor with suspicion. You consider every investor a thief and make the official who helped that investor a thief. As a result, officials will not be able to work,” he said.
Rajapaksa also referred to President Anura Kumara Dissanayake’s earlier criticism of religious observances, saying he was pleased that the President had now referred to Buddhist teachings, including the Kalama Sutta, during the Budget speech.
He said the President should apply the principle of examining issues objectively when addressing the country’s economic and social challenges.
The post Rs. 85 borrowed for every Rs. 100 spent on development: Namal appeared first on LNW Lanka News Web.
