The Hon. J.C. Alawathuwala

¶ 01 Hon. Deputy Chairperson of Committees, many Members have already commented on the President’s Budget speech with its 45 sections. Looking at the policies and ideas that the JVP socialized for 60 years prior to the last Presidential Election, there is now a big change reflected in this Budget—signals originally to the left now turned to the right. We see no fault in that, but there is sadness about the losses to society and the country due to past opposition to many necessary measures. Many items could not be implemented over the decades due to protests led by your political and trade union movements, which caused setbacks and contributed to where we are today.

¶ 02 Comparing what you said during the last two elections with this Budget, it is clear you now intend the opposite policy direction. Many who supported you may feel misled. This Budget continues the path of the former Ranil Wickremesinghe Government under the IMF framework. The deficit is Rs. 2,200 billion. Expenditure excluding interest and repayments has increased by 23%, and total Budget size by 7.8% over last year. Yet there is no clear demonstration of how non-tax revenues will be increased, raising doubts about achieving targets.

¶ 03 From the 2024 Budget, were 100% of proposals implemented? For years, proposals are announced but by year-end, little happens—perhaps only about 25% proceed. With a Rs. 2,200 billion gap, and no visible means to find it, many proposals may remain mere words.

¶ 04 On public sector salaries, there is a big discussion. A Government Minister claimed this is the first time basic salary was increased. Not true. Under the 2015–2019 Yahapalana Government, we increased basic pay by 107%. Many saw their basic pay more than double a decade ago. We accept that after bankruptcy and currency depreciation, public servants and all citizens have suffered. But with current cost of living, these increases are insufficient. Hon. Kabir Hashim showed this morning that for a family of four, additional rice and coconut costs alone outstrip the raise—rice is up by Rs. 80–100 per kilo, coconuts by about Rs. 100 each compared to pre-Government prices.

¶ 05 While some welfare increases are provided, given current prices approaching Sinhala and Hindu New Year, we cannot trust that staple prices will fall; they may rise further. The President spoke of a relief package, but the sums are small, so hardship will likely continue or grow.

¶ 06 Looking at allocations, it is evident that with provincial council elections ahead, some proposals are tailored with promises to the public. On higher education, proposals involve the private sector as well. We welcome addressing severe competition for university places. Many students, especially aspiring medical students, go to India, Bangladesh, and elsewhere, with USD 200–250 million leaving the country annually. Some study in countries with poor environments because domestic private options were blocked for years by your opposition. Parents sell land to educate children abroad. Thus, due to that historic stance, we could not establish many such institutions here.

¶ 07 Our free education system has many achievements; in South Asia we are ahead in education and health. WHO recognized our health achievements. Yet we often fail to acknowledge such gains.

¶ 08 Finally, with a Rs. 2,200 billion deficit, and unclear financing, many 2025 proposals may end up like those in 2023 and 2024—unimplemented. Thank you.