The Hon. Suranga Rathnayaka

¶ 01 Hon. Deputy Chairperson of Committees, for 77 years certain economic systems were obstructed by those who opposed reforms. Today, President Anura Kumara Dissanayake has presented the 79th budget, and after 78 years we can take reforms forward without those past obstructions—this is a victory for the people.

¶ 02 In the budget speech, the President stated that the causes of crisis are both historical and structural: corrupt governance, failed economic policies, and irresponsible public financial management. We must also recall that over past decades the JVP/NPP engaged with and at times supported administrations involving failed policies. The same officials previously involved in policy are preparing this budget; accountability matters.

¶ 03 Some claim they took over a bankrupt state and rescued it in two months. Yet the Finance Minister’s report says: from 3Q 2023 recovery began, with 3Q 2024 growth at 5.5%, and 5.2% over the first three quarters of 2024—broad-based. Accept credit where due, but do not take credit for what you did not do.

¶ 04 Now the numbers: total government revenue Rs. 4,960 billion; recurrent expenditure Rs. 5,886 billion—already a primary gap of Rs. 926 billion. Where is the plan in this budget to manage the primary balance over the next 2–3 years? The speech gave much history but little on these weaknesses.

¶ 05 On revenue composition: direct taxes expected at Rs. 1,167 billion, up Rs. 141 billion (14%). But taxes on goods and services are projected at Rs. 2,772 billion, up from Rs. 2,201 billion—an extra Rs. 571 billion (about 26%). Indirect taxes fall on the poor—those who drink a cup of plain tea and sell a few ladles of porridge to survive. The overall tax increase is about Rs. 747 billion (Rs. 74,700 crore). Meanwhile only Rs. 110 billion (Rs. 11,000 crore) is provided for public servants’ salary increase. You give with one hand and take more with the other.

¶ 06 The Buddha advised to tax like a bee that gathers honey without harming the flower. Here, the flower is crushed and the nectar drained.

¶ 07 We acknowledge positives: controlling government expenditure compared to last year—credit where due. But you also plan to borrow Rs. 4,000 billion anew—this burdens the people and future governments.

¶ 08 Agriculture fell by 11.6% in the last quarter of last year, due to untimely fertilizer support and farmers moving away from cultivation; paddy lacks a fair price. Pay attention to this. You claim Rs. 5 billion can resolve the rice mafia by importing 40,000 MT; experts say it needs Rs. 325 billion to purchase—do not mislead. The people are becoming politically literate and policy-aware.

¶ 09 Finally, since no vehicle permits or privileges are given, ministers now use bullock carts for transport—so it is said. I conclude.