The Hon. R.M. Ranjith Madduma Bandara

¶ 01 [10.39 a.m.]

¶ 02 Hon. Speaker, this Government came to power by misrepresenting 76 years of history. For the first time, a socialist — leftist — party has come to power alone. Previously, left parties joined coalitions. We heard of Sirimavo Bandaranaike’s Government as a socialist government with a closed economy; its leaders had the backbone to implement their policies. In 1977, President J.R. Jayewardene brought a system change, moving to an open, market economy amidst opposition, and subsequent governments followed that economic policy.

¶ 03 But the JVP/NPP claimed that the 76-year policy path was wrong; they would bring something new and change the system. I say today that what they have changed is not the system, but their own positions. Those who opposed privatization and foreign investment now speak differently. Those who opposed private universities, opposed SAITM and affiliating Neville Fernando Teaching Hospital, now say we need private universities. Those who once cried “Indian expansionism,” and opposed the Trincomalee oil tanks to India, now continue with previous arrangements. On Hambantota Port, today a key focus is a refinery there. It is now over 150 days — over five months — of this Government.

¶ 04 What did they say about the IMF agreement? Their policy document says they would renegotiate with the IMF to protect the poor and vulnerable. Have they changed a single word or letter of the IMF agreement? If not, with the mandate you obtained, change it. Because you have not, we oppose this Budget.

¶ 05 They promised salary increases. Before the election they said “not token increases of Rs. 20,000-25,000; we will increase every six months.” Now they say Rs. 15,750 will be added to basic salary — but that even subsumes the previous Rs. 7,500 allowance into the basic. So the net addition this year is Rs. 5,975. The previous Government under Ranil Wickremesinghe–Rajapaksa paid Rs. 5,000 until March. Deduct that, and the increase is only Rs. 975. President himself extolled the 2015 increases. Under Yahapalana, minimum basic salaries rose by at least 107 percent: office assistants from Rs. 11,730 to Rs. 24,250; development officers from Rs. 15,250 to Rs. 31,490; nurses from Rs. 15,000 to Rs. 32,000; doctors’ entry-grade basic from Rs. 25,000 to Rs. 47,000. An admin officer on Rs. 60,000 then now draws around Rs. 130,000. That is how we increased salaries. Today, adding Rs. 5,975 while removing Rs. 5,000 leaves practically Rs. 975.

¶ 06 For Police, when we came to power some drew Rs. 23,000; we raised it to Rs. 58,000 and added a 40% allowance due to long hours. This Budget cuts that 40% to 22%. University Senior Professors’ special allowance cut from 209% to 112%. Parliamentary staff allowance reduced from one-third to one-fourth. You trim allowances and add a token to basic.

¶ 07 Public servants await their April payslips to see the truth. One positive: restoring pension calculations under Circular 03/2016 for retirees 2016–2020, which we proposed but was halted by Gotabaya Rajapaksa; this Government has restored it — welcome.

¶ 08 On agriculture: Rs. 36 billion for fertilizer subsidy — we too provided that. But who gets it now? Only paddy. Not for maize, vegetables, arecanut, red onion, tea, rubber, coconut, potato, or export crops like pepper, cloves, nutmeg. Thus over 50% of farmers get nothing. Hence we oppose the Budget.

¶ 09 The Deputy Minister for Agriculture once as a union leader said paddy would be bought at Rs. 152 per kg; today it is Rs. 150 per kg. They vowed to break rice mill oligopolies by building a 10% buffer stock — about 300,000 metric tons. With Rs. 5 billion you can buy only around 40,000 MT — enough for just a few days. Paddy Marketing Board has no funds. Farmers may not sell to Government; prices will again be set by oligopolists. Where is the promised buffer stock?

¶ 10 Prices of coconut, rice and essentials have soared. You promised to cut VAT on essentials to 10% to lower prices. Why not reduce VAT now?

¶ 11 They claim more for education but levy 18% VAT on school books and materials. You promised to remove PAYE; you have not. You say “no new taxes,” but continue old ones.

¶ 12 On health, you still collect 18% VAT on medicines. The President said Rs. 1,000 million for a New Year relief basket. Relief should not be festival-only; under Yahapalana we subsidized 16 items year-round. This New Year basket looks like election-time largesse ahead of local polls. If you reduce prices, do it for the whole year.

¶ 13 For senior citizens, you promised deposit interest of 5% above market; currently banks pay ~8.5%, but with 10% withholding tax, seniors net about 10% — we gave 15%. They live off this interest, yet pay 18% VAT on medicines and 10% WHT on deposits.

¶ 14 On fuel, you pledged supply without queues. But you continue to tax petrol ~Rs. 110/litre and diesel ~Rs. 75/litre; special excise of Rs. 70 on petrol and Rs. 50 on diesel. Why not reduce these now, when CPC is making billions in profit?

¶ 15 You vowed to end corruption. Yet 323 containers were released from Customs without proper inspection despite “red tape” flags. Publish the list of those containers and contents. If you can disclose President’s Fund medicine procurements, disclose this too. We ask the Chief Government Whip to clarify regarding the 323 containers.

¶ 16 We will vote against this Budget along with the Samagi Jana Balawegaya and others.

¶ 17 Thank you.