Upbeat budget speech foresees rapid economic development

[TamilNet, Wednesday, 06 November 2002, 18:14 GMT]
The Sri Lanka's Finance Minister Wednesday presented the second budget of the ruling United National Front government in parliament that emphasized on generating employment and developing the rural sector. "With the support expected from development partners in Oslo and Tokyo the UNF government will launch a number of new projects next year for the creating a number of productive employment opportunities," said Finance Minister Mr.K.N.Choksy when delivering his budget address.

Sri Lanka's Finance Minister, Mr.K.N.Choksy entering the parliament with the budget box, 6 November 2002.

"The UNF government has an agenda of reforms to implement over the next twelve months. The Economic Management Law would be introduced in parliament to ensure full implementation of the economic reforms. Under the said law the government has to report to parliament twice a year the progress made by each ministry in implementing economic reforms," said Mr.K.N.Choksy.

Regarding the increase of the salary of public servants, the Finance Minister said that the report of the Tissa Devendra Salaries Commission should be studied by parliament before taking a decision whether to implement it or not. The Tissa Devendra report had recommended a wage increase and also thirty percent reduction in the cadre of public servants. The report has not properly addressed the impact of unemployment by such large scale staff reduction, he said.

"Budget deficit should be reduced and under utilized State owned commercial assets would be sold to overcome the debt crisis. The UNF government has succeeded in increasing the growth rate of last year negative figure to an estimated positive 3 % of the GDP in 2002. The rate of inflation has been reduced from 14.2% to 9 %," said Mr.Choksy.

Sri Lanka's Finance Minister, Mr.K.N.Choksy (right), presenting the budget in the parliament, Wednesday.