The appropriation bill presented by the ‘yahapalana’ government for 2017 is nothing but an empty shell says the National Organizer of the JVP MP Bimal Rathnayaka. He said this addressing a media conference held at the head office of the JVP yesterday (23) to draw the attention of the people to the response of the JVP to the Appropriation Bill for 2017 presented to Parliament on the 20th. Member of the Central Committee Comrade Lakshman Nipunarachchi was also present.
MP Rathnayaka said, “The budget presented for 2016 was based on several fundamental items related to the economy. It was based on 5 economic prospects. They are one million jobs, raising the economy of the people, developing rural economy, creating a broad middle class and giving ownership to lands presently occupied by rural and estate communities. As a tax policy it was stated that indirect taxes levied from the masses would be reduced to 40% and direct taxes would be increased to 60%. The promise was to levy higher taxes from the affluent and to tax less from the low income earners.
It is stated that the economic growth in the first 6 months of this year is 3.9%. What is notable is the economic growth during the second quarter has come down to 2.6%. When the government came to power it was said that the economic growth would be raised to 6% through a broad economic plan. However, the lowest economic growth for the recent history was observed in the second quarter decreasing the economic growth of the service sector to 4.9%.
This ‘yahapalana’ government that criticized Rajapaksa regime has taken Rs.127,000 million internationally and Rs.432,000 million locally. The promises of job generation, economic growth and reducing COL given to the masses have not been fulfilled.
He further pointed out The biggest lie in the previous budget in 2016 was about taxes. The Minister of Finance said the taxes heaped on the general public by Rajapaksa regime would be brought down from 80% to 40% and the direct taxes would be increased from 20% to 60% to levy higher taxes from higher income earners. What has happened today is that the indirect taxes heaped on the ordinary people have been increased from 80% to 85% and the direct tax levied for the rich has been brought down from 20% to 15%. This situation is due to the reduction by the Rajapaksa regime the direct tax enacted in 2013 from profits of companies from 35% to 28%. This was reduced to 17% from the last budget. As such, the government reduced the tax for the rich by 11% and increased the tax levied from the people.
The allocations for ministries that affect the people have been slashed changing the name of the ‘open economy’ to ‘Social Market Economy.’ In plain language the government implements its political agenda by pressurizing the masses with severe economic burden. The situation is serious as the government is ignoring the mandate it received when it came to power as revealed in the Appropriation Bill presented said MP.
