The Hon. Shanakiyan Rajaputhiran Rasamanickam

¶ 01 Hon. Deputy Speaker, when the 2025 Budget was presented, we expected that we would have to study it far more extensively than a normal Budget. We thought many policy changes would be reflected. However, as I see it, there is no significant policy shift in this Budget. We anticipated changes across many segments, but such change is not here. Therefore, there is not much new to dig into. Still, there are certain points we must raise.

¶ 02 This Budget forecasts revenue of Rs. 4.9 trillion and expenditure of Rs. 7.1 trillion, leaving a deficit of Rs. 2.2 trillion. Ordinarily, to bridge such a deficit, Governments borrow via Treasury Bonds and the like. I do not know whether the Government plans to do so now. What I can see is that neither the Minister of Finance nor even the State Minister of Finance is present in this House during a Budget debate or when we speak on finance. They say roads will be built, bridges will be built, and hospitals will be built. All of this is Capital Expenditure. Typically, to reduce the deficit, Capital Expenditure is curtailed. When the Budget speech is read, everyone in the country listens to how many billions will be spent on roads and hospitals. The Government may claim they are different from the previous ones, but the Budget does not show that.

¶ 03 From 2015 to 2024, on average, only 58 per cent of Capital Expenditure allocations were actually spent. In 2024, though Rs. 1,260 billion was allocated for capital, only Rs. 791 billion was spent. So, citizens in some districts who are happy today hearing of “capital development” will find at year-end that it did not happen. Recurrent costs change during the year. In 2024, interest payments exceeded initial estimates, altering recurrent expenditure. As a result, like last time, by year-end or early next year, we will likely see that promised capital projects cannot be delivered and capital spending will be cut. We support good projects; we are pointing out shortcomings.

¶ 04 - Historically, only around 58 per cent of big capital allocations are used. So, though the Government lists billions for northern rural roads and bridges, by year-end, as before, they often are not fully implemented. - For example, Rs. 5 billion is shown for Northern rural roads and bridges. When our colleague Hon. K. Kodeswaran (Ravikaran) requested the long-needed Mullaitivu Vattuvagal bridge from the President, we were told Rs. 1 billion was allocated in the district. Similarly, Rs. 100 million was said to be for the Jaffna Library. Yet in the total Rs. 7.2 trillion expenditure, only about Rs. 6 billion is earmarked for the Northern Province. The North voted in unprecedented numbers for a southern party; however, what is allocated is meagre.

¶ 05 In the East, Tamil voters who supported the Government ask what they received. One post noted that while a National List seat went to a Muslim from Akkaraipattu, Tamils in the East saw nothing concrete. Many allocations exist on paper but not in practice. During the “good governance” era, too, hundreds of millions were “compressed” and never reached the ground. The Government should understand it cannot keep deceiving the North with token allocations.

¶ 06 Key unresolved issues in the North: - The struggle of the families of the disappeared continues, now over 2,900 days, the longest of its kind. The NPP Government has not even brought a basic proposal. - On political prisoners, the Justice Minister says there are none. He asks us for a list—as if we were the ministry. - On mass graves and skeletal remains discovered in the North, people want results. Do not think development alone will win over the people. Even Mahinda Rajapaksa did many big projects; yet without a political solution, there is no lasting settlement.

¶ 07 Without a new Constitution and a durable political solution based on power-sharing, this country cannot reconcile or build its economy. If Tamil people’s core political aspirations are ignored in this Budget, they will respond at the local authority elections. The Northern and Eastern people do not want mere allocations; they want a just political arrangement that lets them govern themselves. Conduct the Provincial Council Elections with the same speed as local polls. The President can bring a new Constitution now; saying it will come after the economy revives is a fallacy. Without addressing the national question, there will be no sustained economic recovery.

¶ 08 On investment: there is no mechanism in this Budget to attract Foreign Direct Investment. It is all domestic revenue measures.

¶ 09 On tax exemptions: People voted for the NPP thinking it was for the common man. If this Government had cancelled tax exemptions granted by previous regimes to cronies, it could have raised an additional Rs. 966 billion. With Rs. 966 billion you could: - Triple the “Aswesuma” allocation (Budgeted Rs. 233 billion). - Fully fund pensions and gratuities (about Rs. 480 billion). - Increase the Health allocation (Rs. 604 billion) by 150 per cent. - The Education allocation is Rs. 619 billion; this, too, could be significantly enhanced.

¶ 10 On cigarettes: Since 2020, overall prices of goods and services rose around 90-100 per cent. But cigarette excise increased only about 66 per cent in that time, despite CTC prices rising more. Last week at COPF, I asked why the cigarette tax was only 5.9 per cent; I was told it was indexation. Regardless, revenue targets are being missed. For 2024, Excise from cigarettes was targeted at Rs. 140 billion, but only Rs. 117 billion was achieved. If Ministers were here, they could respond. From the price increase of a Capstan stick, Government gains only about 8 per cent while CTC gains around 28 per cent. When you tax the poor, why not tax these products adequately? I am not asking for unfair taxes; I am asking for parity with other products.

¶ 11 On Defence Ministry allocations: A Daily Mirror article shows “diets and uniforms” rose from Rs. 70.7 billion (2023) to Rs. 101 billion (2024) and to Rs. 135 billion (2025), a 33 per cent jump. In 2022, it was alleged that uniforms were procured from France. One line item has risen by Rs. 35 billion. We will examine this further at the Committee Stage.

¶ 12 On fuel taxes: During the election, the Government promised to remove fuel taxes. They were not reduced; instead, Rs. 200 billion came from fuel taxes in 2024 and Rs. 230 billion is expected this year. Under the IMF programme, revenue must be 15.1 per cent of GDP, and the Budget is set accordingly. If you reduce fuel taxes now, you will miss targets. The IMF Executive Board meets on 28 February; this Budget is aligned to 15.1 per cent. Do not promise what you cannot deliver.

¶ 13 On vehicle imports: A Daily FT article (3 Feb 2025) says Sri Lanka ended the five-year vehicle import ban with concerns. Allowing only up to three-year-old vehicles now (previously five) prices out the poor; even a Bajaj three-wheeler costs Rs. 1.9 million. This hits the small man who hoped to upgrade to a small car.

¶ 14 On reserves: The President said reserves are US$ 6.1 billion. That is misleading. Only about US$ 4.1 billion is usable; around US$ 2 billion are swaps. Debt swaps are not usable reserves.

¶ 15 On teachers’ salaries: The Subodhini Committee recommended two-thirds of the demanded increase. Teachers remain dissatisfied because increases are staggered over three years.

¶ 16 On plantation workers’ wages: Every Government promises a Rs. 1,700 daily wage, but it is not implemented. If companies refuse to pay, then at least allocate Rs. 200 per worker from the Budget until a solution is found. For the first time, plantation Tamils have sent MPs from different parties. Is this how you respond to them?

¶ 17 On dairy: The President said Rs. 2,500 million is allocated to increase dairy production. You need not allocate cash; first gazette and release grazing lands. In the North and East, Tamil farmers lack grazing grounds; milch cows are slaughtered for want of pasture.

¶ 18 Forest and land: A report delimiting forests to the 1983 map is ready; implement it so people can access their own lands. Identified military camps are to be removed, but no action for months. Only seven acres were released at the very beginning. Meanwhile, in the East, even the Department of Archaeology is grabbing land; this continues today in Trincomalee Kuchchaveli. Stop these, or do not speak of reconciliation.

¶ 19 The North voted for you; but if you delay a new Constitution and political solution, the people will reverse their support at the next opportunity. You cannot build the economy without resolving the Tamil national question through meaningful power sharing.

¶ 20 Hon. Deputy Speaker, thank you.