The Hon. Asoka Sapumal Ranwala

¶ 01 Hon. Presiding Member, when the Minister of Finance and the President of the country present the Budget Speech, according to our country’s tradition, interested and sensitive groups listen and study it closely. Especially, A/L students in schools, university students, workers in factories, as well as the wider business community including boards of directors collectively engage with it. In the past, this listening happened via radio; more recently, it is live on television and social media, enabling people to study it in real time.

¶ 02 There are many Opposition MPs in this House with years of experience and sound knowledge on budgets. Therefore, during the Budget Debate that follows the presentation, what should often be discussed is, from a constructive perspective, what measures in the Budget aim to take the country forward. However, we did not see such a discussion from the Opposition. Owing to that gap, I must first outline the fundamentals clearly.

¶ 03 For 2026, the total estimated government revenue is Rs. 5,355 billion, planned to be secured through tax revenue, non-tax revenue, and grants. Running a government entails numerous expenditures including salaries. The primary expenditure is estimated at Rs. 4,485 billion. The difference between these two is the primary balance, which is a surplus of Rs. 870 billion. For budget analysts, this is significant. Whenever the primary balance fails to remain positive at such a level, any state can fall into a severe fiscal crisis.

¶ 04 From a young age we have seen that when budgets are presented under conditions of economic strength, indiscriminate spending and shutting down revenue-generating avenues led the country into repeated economic crises. The peak of this was in 2022 when we lacked the rupees to procure goods, and because we could not generate rupees appropriately, the people became stakeholders in a massive economic crisis. Yet, those who listened to past budgets believed the country would reach a higher level of development thereafter; that did not happen. Hence, it is vital to study the data.

¶ 05 Although there is a primary surplus of Rs. 870 billion, the Government must still meet other expenditures including interest payments totaling Rs. 2,627 billion. That gives us the overall budget deficit. In addition to this deficit, there is amortization of Rs. 1,878 billion and adjustments of Rs. 10 billion. Altogether, the gross financing need is Rs. 3,740 billion. What I expect from this august House is a discussion on how to meet this need.

¶ 06 Parliament’s approval is required to meet this financing need in the next fiscal year. We expected the Opposition’s supposed economic experts to explain how to raise this Rs. 3,740 billion and address the related challenges to move forward. Instead, we observed they have a well-rehearsed approach, focusing largely on poverty. Over 80% of our poor live in rural areas. Without eradicating or at least reducing rural poverty, integrating village communities into the broader economy is difficult, because many live day-to-day with difficulty. While those at higher income levels think about completing housing needs, and others about funding foreign education, for the most vulnerable the priority is daily food and survival. At a minimum, we must secure those needs. Measures initiated in 2025 to reduce rural poverty are strengthened further in this Budget for 2026.

¶ 07 To eradicate rural poverty, we must expand economic opportunities. As a previous MP explained, dairy farmers need a functional dairy hub that brings farmers together and creates a place at village level to discuss and resolve their problems—coordinating with the Medical Officer of Health and the Divisional Secretariat as needed. With that organizational purpose, the Dairy Hub program begun in 2025 has been allocated considerable additional funding to be taken forward.

¶ 08 Likewise, infrastructure development is crucial. A village’s development is hampered by inadequate infrastructure—sometimes it is simply the absence of a bridge to connect to the next village, or a proper interconnecting road. In 2025, the Government piloted such targeted interventions, and they were highly successful. When two villages are connected, linkages expand—not only in transport but also access to health and education.

¶ 09 Therefore, to meet village development targets, substantial funding has been allocated to rural infrastructure—particularly transport. Previously, budgets would allocate scattered sums to disparate targets. This Budget takes a different approach: by funding the reduction of rural poverty in an integrated manner, village infrastructure and educational facilities improve, and surrounding villages become connected. All of this is presented under a coordinated program in this Budget.

¶ 10 Next, planned modernization. Modernization is not merely acquiring new tools; agriculture will not modernize simply by buying new equipment. There must be planned modernization—discussion at village level on what economic transformation the equipment can achieve. Rather than allocating funds to MPs for piecemeal political ends, officials and local political authorities should together, through a single coordinating body and with a people’s participatory process, implement village initiatives. That ensures work is carried out under a Community Strength Committee, reflecting people’s aspirations and participation.

¶ 11 Further, we must ensure sustainability. If development projects are limited to just a year or two, the funds will not be effective. For instance, if we later widen a road and must demolish a newly built embankment, questions arise about the initial allocation.

¶ 12 From the Opposition we repeatedly hear: “The Treasury is overflowing; there are trillions in state banks; why not spend this money?” Such economic and attitudinal positions were among the main reasons we went bankrupt. Let me give an example: successive governments, when elections neared, released large sums to the public to curry favor. People believed that was true budgeting. Yes, funds went to villages—say for farmer assistance or road projects—but if the same approach is adopted in the national budget, a country will not develop. With a different approach, we can both strengthen the economy and maintain fiscal discipline. This Government has managed to do that, and the foundational intent for discipline has been broadly socialized.

¶ 13 In this House it was said, “How can you build a house with Rs. 1 million?” Through the National Housing Development Authority in Gampaha District, houses were selected and built with a robust beneficiary selection: beneficiaries must own a plot with basic amenities; families with girls in unsafe, dilapidated houses were prioritized. For such beneficiaries, the Rs. 1 million is the price tag. However, beyond that price, greater value is added: the entire village joins in a social enterprise to build; economically stronger residents contribute items like a bag of cement; the household contributes labor. The resulting house, if financially valued, is equivalent to Rs. 1.5 to 2 million. Over 220 such houses have been identified; in Gampaha District, 164 have been completed. Altogether, this Budget merits a separate, serious discussion. It serves students, youth, workers, and farmers as a platform for engagement. Therefore, I invite Opposition MPs too to engage with these numbers and have a constructive dialogue. I conclude.

¶ 14 Thank you.