The Hon. T.B. Sarath – Deputy Minister of Housing, Construction and Water Supply

¶ 01 Hon. Presiding Member, throughout today’s Budget debate the Opposition tried to claim that the government introduced new taxes and is plundering the people. They failed to name a single new tax. No new taxes have been imposed through this Budget. Government revenue increased because we broadened the tax net, not because we introduced new levies.

¶ 02 Previously, innocent poor people paid taxes that were then siphoned off by businessmen—many of whom were ruling party politicians—through commissions and theft. Money never reached the Treasury. This government does not allow public funds collected from the people to be stolen. No tax theft, no commissions—hence revenues have risen. These are not from new taxes, but from properly collecting what was previously evaded. Today, money cannot be stolen from Sri Lanka Customs as before; collection is now proper.

¶ 03 From these revenues, under the Budget we have allocated Rs. 1 million (Rs. 10 lakhs) per house to build homes under the Ministry of Housing. Some Opposition MPs questioned how to build a house with Rs. 10 lakhs. Nearly 3,000 houses have been built and documented—names and addresses are on record, verifiable in every district. While the government grants Rs. 10 lakhs, beneficiaries typically spend Rs. 1.5–2 million total due to community help—villagers, businesses and even state institutions assist. Building homes has become a national drive, which is why we built around 3,000 houses.

¶ 04 By contrast, under the 2015–2019 government, they promised 64,407 houses in 2,562 villages but built about 16,747, with less than 20% occupancy. Many houses were built inside wildlife zones and elephant corridors without water or roads—uninhabitable. Yet they boast as if they were master planners.

¶ 05 This year we have allocated funds to build 7,000 houses—Rs. 10 lakhs per house. We have multiple programmes. For estate communities, 2,500 housing units are funded with Rs. 5.6 billion. In and around Colombo, we plan to construct 50,000 units over the next period for urban regeneration; this year Rs. 15 billion is allocated to relocate 3,000 households. Rs. 6.5 billion is allocated to provide affordable housing for low-income residents in Colombo and suburbs. For conflict-affected people in the North and East—so often raised by Hon. Archchuna—Rs. 3.8 billion is allocated to build 2,445 houses, at Rs. 15 lakhs per house in the North and East given the higher costs there (while elsewhere it is Rs. 10 lakhs).

¶ 06 Between 2015–2019, around 4,800 families were evicted in the North with only temporary shelters and token assistance, leaving them in extreme hardship. Last year we built 1,900 houses in Jaffna, Vavuniya, Mannar and elsewhere. Under this Budget, we plan 2,445 more for the displaced. Within the next three to four years, we aim to complete houses for every displaced family in the Jaffna peninsula.

¶ 07 We will also upgrade common facilities in old National Housing Development Authority schemes—Rs. 680 million is allocated. Altogether, funds are allocated for over 27,000 houses—more than were constructed over entire prior five-year periods. This Budget allocates for people’s real needs.

¶ 08 The Opposition alleges the President’s Head has increased by 35%. Major initiatives over the next four years include Clean Sri Lanka, the Digital Economy, and the Praja Shakthi programme to revive the rural economy. The additional allocations are for these national programmes operated through the President’s Special Expenditure Unit.

¶ 09 This is a people-centered Budget designed to revive the rural economy. The Opposition is struggling to build arguments, but once this Budget is implemented, that will change. Next year, when the Budget comes, the Opposition may have to come on a hospital bed rather than to the front bench.