President presents development budget

* Rs 1,500-7,800 for public workers * Rs. 7,500 for veterinary surgeons * Rs. 1,000 mn for farmer pension sc eme * !ive oli"ay bungalows for artistes * 15 pc upfront ta# on lan"s lease" to foreigners * $%& 150 mn to %ri'ankan an" $%& 50 mn to (i in 'anka * ) "onation of 50,000 (* of rice to +!, * *elecom levy fi#e" at -5 pct * -0,000 ig .uality cows to be importe" /ovember -1, -010, 1-100 pm by %aman 2n"ra3it
,resi"ent (a in"a Ra3apaksa, presenting is government4s nint consecutive bu"get in ,arliament yester"ay, offere" a Rs. 1,500-7,800 mont ly allowance to state sector employee, Rs. 7,500 mont ly allowance to veterinary surgeon, propose" an allocation of Rs. 1,000 million to strengt en t e farmer pension sc eme an" setting up of five oli"ay bungalows for artistes among ot er reliefs. * e $/, an" 56, boycotte" t e bu"get speec an" 7pposition benc es a" only t e (,s of t e */) an" a single (, of t e !rontline %ocialist ,arty. %ummarising t e economic forecast for t e ne#t year, t e ,resi"ent sai" e was confi"ent t at economic growt woul" reac 7.5 to 08 percent wit e#pecte" 5 to 8 percent inflation. !oreign earnings from t e tourism in"ustry woul" be aroun" $%& 1.5 billion. * e country4s construction in"ustry, w ic now accounts for 10 percent of t e 9&,, was e#pecte" to grow to aroun" 17 percent. :+e target a bu"get "eficit of 5.- percent of 9&, in -01; an" ;.5 percent in -015. +e are "etermine" to bring "own t e bu"get "eficit to 0.8 percent by -018 an" re"uce our "ebt<9&, ratio to 85 percent. * e ,resi"ent sai"1 :=#port in"ustries, w ic were confronte" by "epresse" global markets, ave picke" up s owing a 0- percent growt . * e apparel in"ustry as s own a 08 percent growt an" is e#pecte" to generate $% > ;,000 million earnings t is year. 6alue a""e" tea, rubber an" cinnamon pro"ucts a"" aroun" $% > 0,000 million to e#port earnings s owing ow plantation crops coul" be translate" into being ig value manufacture" e#ports. %oftware, gem, 3ewellery, an"loom an" confectionary in"ustries ave gaine" momentum. =#port earnings are e#pecte" to generate $%> 10,000 million an" t e earnings from foreign

employment are e#pecte" to be aroun" $% > 7,000 million.: * e ,resi"ent propose" t at a 15 percent upfront ta# be impose" upfront on leasing of state an" private lan"s to foreigners. :!rom t is year, foreigners can ave access to state an" private lan" only t roug long-term lease arrangements,: e sai". ?e propose" setting up of a /ational @ommunity +ater %upply &epartment to regulate an" "evelop community water supply sc emes an" propose" allocation of Rs 000 million for community water supply initiatives un"er t e "epartment. :2n terms of t e ongoing capitalisation to strengt en t e two airlines, a furt er $% > 150 million will be provi"e" to %ri'ankan )irlines an" $%> 50 million to (i in 'anka in -01;. 2n or"er to strengt en t e %'*A bus fleet wit a furt er -,000 buses, Rs 1,000 million as been provi"e" to t e %'*A in support of its capital investments. 2n a""ition, 2 propose to provi"e Rs 500 million to bri"ge its revenue s ortfall.: * e government revenue for -01; is likely to be aroun" Rs 1,100 billion. Revenue from 2ncome ta#, 6)* an" /A* on "omestic activities as increase" by 1; percent an" is on a buoyant growt pat . :2t is propose" to increase t e 0- percent /A* applicable to t e banking sector to all banks an" financial institutions to provi"e e.ual treatment to t e banking an" nonbanking sectors an" to e#pan" t e ta# base. 2t is also propose" to fi# t e ta#-free t res ol" applicable for 6)* on supermarket scale retail tra"e at Rs -50 million per .uarter. 2n or"er to prevent manipulations on t e computation of turnover t roug e#empte" items, 2 propose to fi# a limit of -5 percent of t e total turnover as e#empte" value from 6)* in relation to suc business. *elecommunication levy will be fi#e" at -5 percent.: * e ,resi"ent sai"1 :* e government4s current e#pen"iture at aroun" Rs 1,-00 billion remains ig er t an government revenue. * e payments of salaries an" allowances to public servants for t e provision of e"ucation, ealt , rural "evelopment, a"ministrative an" e#tension services an" national security total Rs 0B0 billion. ) furt er Rs 1-5 billion is spent on pensions. !ertiliCer subsi"y, p armaceutical "rugs an" a wi"e range of welfare e#pen"iture takes anot er Rs 100 billion. * ese e#pen"itures must be secure". * e total interest cost of Rs ;;5 billion of w ic , "omestic interest payments amount to Rs 080 billion nee"s to be manage".: * e -01; bu"get as allocate" Rs. 1,700 million for "ownstream an" liveli oo" "evelopment activities associate" wit t e recently "evelope" ma3or reservoirs suc as +e eragala, Rambaken 7ya, an" &e"uru 7ya. :2 propose to increase t e irrigation bu"get by a furt er Rs 1;,000 million for t e early completion of Dan 7ya, $ma 7ya an" (oraga akan"a "evelopment programmes.: * e ,resi"ent propose" t e continuation wit t e fertiliser subsi"y sc eme to provi"e all varieties of fertiliCer at Rs 050 per 50 kg bag for pa""y cultivation an" a subsi"ise" price of Rs. 1,-50 per 50 kg bag for all ot er crops. ?e propose" t e allocation of Rs. -,000 million in -01; for t e re abilitation of tanks, minor irrigation sc emes an" aban"one" pa""y fiel"s. ?e also propose" t e "onation of 50,000 (* of rice to t e +orl" !oo" ,rogramme of w ic

10,000 (* woul" be given to t e +!, office in %ri 'anka. * e ,resi"ent propose" to implement a pension sc eme to provi"e a minimum Rs 1,-50 as a mont ly pension to farmers over 80 years of age from 5anuary -01;. ?e also propose" to allocate Rs. 500 million for researc lab facilities, e.uipment an" researc work by agricultural faculties in universities. 2t is propose" to import -0,000 ig .uality cows to promote small an" me"ium "airy farms, to allocate Rs. -00 million to strengt en veterinary services wit mo"ern facilities, recruitment of veterinarians an" to grant a mont ly allowance of Rs 7,500 to veterinarians. )n allocation of Rs. B00 million as been ma"e to provi"e Reverse 7smosis water purification plants to villages in t e /ort @entral ,rovince to prevent water borne "iseases. * e secon" rea"ing on t e )ppropriation Aill will commence to"ay E--F an" will continue until /ovember -B. * e secon" rea"ing vote will be taken at 8.00 p.m. on /ovember -B. * e committee stage "ebate will begin on /ovember 00 an" continue until &ecember -0 E for 18 "aysF. * e t ir" rea"ing vote will be taken on &ecember -0.