Revenue Rs 750 b., Rs 582 b. for debt servicing, only Rs 168 b. for all other expenses
By Kelum Bandara & Yohan Perera
The main opposition
UNP said yesterday that according to Wednesday`s Budget, out of the revenue of Rs. 750 billion, the government planned to spend Rs. 582 billion for debt servicing with the result that the remaining Rs 168 billion would be insufficient to even pay public servants` salaries.
UNP front-liner Kabir Hasheem opening the budget debate described the budget as a `ghost budget`.
`Just like a ghost is visible, but not possible to touch, the government read out a relief package for the people, with no benefit for the people,` he said.
Mr. Hasheem said the budget was only a list of figures, spewed out to mislead the public.
He said the government`s total expenditure for 2008 was estimated at Rs. 1,635 billion including the Rs. 591 billion to be spent without parliamentary approval.
He said there were discrepancies between figures in the appropriation Bill presented to parliament in October and those in the budget proposals.
The UNP MP said the actual budget deficit was Rs. 884 billion.
Commenting on the controversial dollar bond issue obtained from a consortium of foreign banks at a high rate of interest.
He said these monies had been used to settle loans obtained from the
Central Bank and other State Banks.
`Out of this Rs.56 billion some Rs. 30 billion had been used to settle loans from the Central Bank and another nine billion rupees to pay back loans from, the Bank of
Ceylon,` he said.
He said what the government had done with the loan runs counter to the statement made by the President that he was not prepared to mortgage the country to feed people.
`This bond issue has not been used to develop the infrastructure facilities despite claims made to this effect`, he said.
Mr Hasheem said the government`s claim that it was attempting to promote local industries through this budget was a mockery under these circumstances.
`The SME Bank which was meant for granting loans to small and medium scale businessmen was attached to Lankaputra Bank`. However, this bank has not granted loans to local industrialists. In fact, it has given loans to a certain Finance Company at seven percent,` he said.
He said the Finance Company had provided leasing facilities for people to purchase
three-wheelers at an interest rate of 24 percent.
`The company makes a profit of 17 percent out of state funds`, he said.
MP
Basil Rajapaksa opened the debate on behalf of the government saying he would not attempt to answer allegations made by Mr. Hasheem who was a person found guilty of making allegations against the President at the time he was Prime Minster.
`Mr. Hasheem was fined by court. So, that is enough for people to understand him,` he said.
