- SLPP’s budget for 2021 defeated in three local government bodies
- SLPP backbenchers hand over letter inviting Basil to enter Parliament
- Corona talk in the lobby turns to Dayasiri, as security test positive
- SJB still unable to rein in errant MPs of coalition partners
The Government, led by President Gotabaya Rajapaksa and Prime Minister Mahinda Rajapaksa, is currently facing several battles – one in the form of the Covid-19 pandemic and the other in the form of economic revival. Neither battle seems to be showing signs of abating any time soon.
The Government is to face its litmus test on economic management when it presents its first official budget for 2021 this Tuesday (17).
The 2021 Budget that will be presented by Prime Minister Rajapaksa is expected to set the tone of the Government’s policies for the year ahead.
The Prime Minister, addressing Parliament during the debate on the 2020 Appropriation Bill last Thursday (12), said that while the International Monetary Fund (IMF) had projected a 4.6% negative growth by end-2020, the Government would present a budget aimed at creating a modern economy through the “Vistas of Prosperity” policy document.
“We have to not only convert a negative economy to a positive high economic growth rate of 6%, but such growth should result in the eradication of poverty. I wish to remind this House that this is the vision of the ‘Vistas of Prosperity’ policy as presented by President Gotabaya Rajapaksa. I will present the proposals to create a modern economy in our country through ‘Vistas of Prosperity’ to this House, through the budget speech 2021 on 17 November,” the Prime Minister had said.
According to the Prime Minister, the IMF had projected a 10.3% economic contraction for India, a 1.9% growth for China, and a 4.3% contraction for the US, due to the Covid-19 pandemic.
The Prime Minister had said the new Government’s accomplishments in 2020, even amidst many challenges, were considerable, which include solving the unemployment issue with nearly 40,000 people under the programme tipped to be provided jobs, targeting 100,000 people from the poorest families.
He had further noted that the Government had reduced VAT (value added tax) and NBT (nation building tax) from 17% to 8% and increased the applicable turnover threshold for VAT to Rs. 25 million per month (it was Rs. 1 million per month previously), exempting most small and medium-scale businesses from VAT; removed income taxes on agriculture, plantation crops, livestock, and farm activity; and removed the PAYE (pay as you earn) tax on information technology-related jobs and foreign employment.
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Prime Minister Mahinda Rajapaksa addresses the Parliament during 2020 Appropriation Bill dedate, 12 November 2020[/caption]
“By reducing the annual interest rates on Treasury Bills and Treasury Bonds from 15% to around 5%, not only were we able to reduce the pressure of interest cost, but we were also able to disburse loans amounting to almost Rs. 250 billion to those public and private entities that were struggling. We were able to stabilise the exchange rate, which was steadily depreciating then at around the Rs. 185 level and to service the foreign debt of $ 4,200 million, thus averting the country being classified into a debt default status,” Rajapaksa had said.
It is evident that the Government led by President Rajapaksa is well aware of the need to keep the economy afloat.
While facing a re-emergence of Covid-19, President Rajapaksa had said that it is the Government’s policy to keep the economy going while ensuring all the activities including employment, agriculture, and fishing move forward.
The President had made these remarks during the daily discussion with the members of the Task Force on Covid-19 Prevention held at the Presidential Secretariat last Monday (9).
“We have three options in the face of the spread of the pandemic. The first is to lock down the entire country by imposing curfew. The second is not to do anything. Carrying our normal activities while controlling the disease is the third option and we opted for that,” President had said.
Budget defeats
However, the governing Sri Lanka Podujana Peramuna (SLPP) last week saw the budgets presented for 2021 in three of the local governing bodies led by the party being defeated.
The 2021 budget proposals presented by the SLPP in the Ampara Urban Council, Ja-Ela Pradeshiya Sabha, and Haldummulla Pradeshiya Sabha were defeated last Thursday.
The Ampara Urban Council consists of nine SLPP councillors, four United National Party (UNP) councillors, three Sri Lanka Freedom Party (SLFP) councillors, and one councillor each from the Janatha Vimukthi Peramuna (JVP) and an independent group.
However, six SLPP councillors had voted against the budget presented by their party. Three UNP councillors had voted in favour of the budget presentation while the SLFP councillors had voted against it.
The budget of the Ampara Urban Council was defeated by 12 councillors voting against and six councillors voting in favour of the proposals.
Meanwhile, the budget presented to the Ja-Ela Pradehsiya Sabha that consists of 47 members had been defeated when four of the 23 SLPP councillors in the local government body voted against it. While 24 councillors voted against the budget proposals, 18 councillors had voted in favour of it.
However, the SLPP had faced its worst defeat in the Haldummulla Pradeshiya Sabha. Out of the 20 councillors in the local government body, only three councillors had voted in favour.
Opposition concerns
Nevertheless, the Government overcame its first hurdle of passing the 2020 Appropriation Bill in Parliament last week without a vote.
However, the Opposition parties raised objections over the Government’s economic management as well as its policy implementation.
It was Tamil National Alliance (TNA) Jaffna District MP M.A. Sumanthiran who raised questions over the legality of the Appropriation Bill for 2020 presented to Parliament.
The MP alleged that it was a Bill intended to cover up various illegalities that had been purported in this country.
“The Bill that is before us is not only a strange Bill, but it is an act to cover up various illegalities that have been purported in this country,” Sumanthiran had said during the Second Reading debate on the Bill.
He had noted that an Appropriation Bill must be debated and approved prior to the financial year for which it applies and it was only then that the Executive could obtain the approval of Parliament to draw from the Consolidated Fund, borrow, and generally administer the finances of the country.
“Article 148 of the Constitution very clearly says that the Parliament will have full control over public finance. No tax rate or any other levy will be imposed by any local authority or any other public authority except by or under the authority of law passed by Parliament or of any existing law. So, there is no law until now passed for the financial year 2020 that the Parliament has approved. What was approved were certain resolutions under Article 150 Subsection A2. Those resolutions do not permit levying of taxes or borrowing by the Government,” the MP had said.
He had noted that there had been a pressing need to make payments, to spend, and to make grants to the general public who were affected in several areas, such as disseminating the relief of Rs. 5,000 to families in the months of April and May.
“None of those were public services. But all those expenditures were done, expenses were met, developmental activities were carried out. All this is in violation of the very strict limitation imposed by the provision of the Constitution that says for specific public service only. So, there is a blatant violation of the Constitution by this Government and what is worse, for the period 1 May to 31 August, there was no resolution under Article 152,” he had pointed out.
According to Sumanthiran, the Minister of Finance had said twice that the President was acting under Article 150 Subsection 3 which authorised expenses, and argued that under Article 153, the President could only authorise spending for public services until the expiry of three months from the date of which the new Parliament was summoned to meet.
“Originally, the new Parliament was summoned to meet in May 2020. Thereafter, after the Election Commission postponed the elections; it was put off until 20 August. Nevertheless, the very limited authorities that a constitution gives a president is during a period of dissolution; he can only authorise expenditure for public services and nothing else,” he had noted.
“It is bad enough that this is coming in the month of November for this financial year; it is blatantly revealing to us that what has been expended is far beyond the authority that the Constitution gives the President,” Sumanthiran had added.
Meanwhile, the Opposition had also pointed to the difficulties faced by the public in the battle for survival.
The Samagi Jana Balawegaya (SJB) noted that the people have pawned gold worth Rs. 643 billion for loans so far, an amount which is higher than the Government’s income tax revenue.
SJB MP Kabir Hashim said the Government’s tax revenue has reduced to Rs. 400 billion.
“This shows how difficult it is for the people. On the other hand, the unpaid credit cards amount is 41% and this amounts to Rs. 15.8 billion. However, the Government keeps saying that the country is functioning smoothly. If that’s the case, why are people pawning this much gold?” Hashim had questioned.
He had said the Government’s move to reduce income tax revenue was a short-sighted move. “The standard is that a government’s tax revenue should amount to 20% of GDP. We maintained this at 10%, but this Government reduced it to less than 10%,” he had said.
The MP had noted that the Government had asked for a covering approval for expenditure it had already incurred by presenting the Vote on Account. “This has never happened before,” he had added.
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SJB Member of Parliament Eran Wickramaratne[/caption]
Meanwhile, SJB MP Eran Wickramaratne had said in Parliament that since this Government came into power, the taxes on the poor have increased while the taxes on the rich have been brought down due to political exigencies. “As a result, the economy has gone to an abysmal state, with national revenue heading to the lowest in the region to 9% of GDP from 13% during the Yahapalana Government,” he had said.
Wickramaratne had accused the Government of making changes to the taxation policies without the required legislation being brought to Parliament during this year.
Only the VAT rate could be changed and no other rates can be changed without the approval of the Parliament.
He had also cautioned that when the revenue drops, the poor are under pressure and there is a possibility for revolutions to occur. “Hence, it is the responsibility of every government to make sure revenue is increased to serve the poor of the country and that the rich needs to be taxed, so the poor shall live without burdens. All of us can live in harmony; we need a more equal society,” he had added.
According to Wickramaratne, the Government had failed in terms of generating income, and borrowing also needs the approval of Parliament on its limits, as borrowings have increased by Rs. 1,230 billion without proper approval. “In other words, it is Rs. 5.8 billion a day. In terms of the GDP, it will reach Rs. 16 trillion in 2020. As the country is heading towards negative growth, how can the GDP go up as indicated by the Treasury?” he had questioned.
He had emphasised that the country needed to face these challenges openly without hiding data. “In the first quarter, there was negative growth of the economy; this quarter should reach approximately to 17-18%. Annual growth is expected to be a 6-9% negative growth.”
Wickramaratne also drove a point to all legislators when he had said that parliamentarians have a responsibility towards the people of this country and not towards the President. “People are the sovereign in a republic, and political representatives have been elected by the people. Therefore, it is the duty of the parliamentarians to stand by the Constitution and protect the freedom and the rights of the people.”
Covid in the lobby
SLFP General Secretary Minister Dayasiri Jayasekera last week became the centre of attention in the parliament lobby for MPs.
Last Thursday, the governing party MPs’ lobby in Parliament was quite entertaining when a discussion on the current Covid-19 situation in the country resulted in a revelation by Jayasekera that one of his security officers had tested positive that day.
Jayasekera had said that while PCR tests were conducted on several police personnel from the Cinnamon Gardens Police who were providing security to his official residence, several tests have turned out Covid-19-positive results.
Hearing this, a few governing party parliamentarians had turned to humour by inviting other government MPs to sit with the Minister, saying he was infected.
While some of the government MPs had laughed, others had physically moved away from Jayasekera.
However, after having a good laugh with the governing party MPs, Jayasekera had said that the police officer who had tested positive was involved in providing security to his residence and was not his personal security detail.
Push for Basil
A group of parliamentarians representing the SLPP have commenced a campaign to collect signatures to a letter inviting the party’s Founder/National Organiser former Minister Basil Rajapaksa to enter Parliament.
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SLPP Founder and National Organiser Basil Rajapaksa[/caption]
The collection of signatures for the letter had commenced last Thursday and by Friday morning (13), the letter had collected close to 20 signatures mainly from the backbenchers from Parliament.
“You created the political party that has now become the largest political party in the country after winning three national elections like the local government, presidential, and general election within a short period of four years. You gave life to the party and organised it from the setting up of the village-level organising committees to the senior office bearers. Therefore, we are unable to think of the Sri Lanka Podujana Peramuna without you,” the letter had stated.
“However, the party’s Founder is still not in Parliament. We believe that your entry to Parliament is vital for the country’s economic development and to ensure the active participation of the Sri Lanka Podujana Peramuna in the process. Therefore, we request you to enter Parliament as soon as possible,” the letter had added.
Galle District MP Sampath Atukorala had signed the letter first and it includes the signatures of SLFP MPs Angajan Ramanathan and Cader Masthan.
Full debate
However, in the run-up to the 2021 Budget presentation this week, the Opposition locked horns with the governing party over the number of dates allocated for the budget debate.
Opposition members last Monday (9) raised objections to attempts by the Government to limit the 2021 Budget debate to 11 days, citing the current Covid-19 situation in the country. The move, if implemented, would reduce the number of days the budget proposals are debated.
When the Committee on Parliamentary Business met on Monday, the Government had proposed the 11-day limit, but the Opposition legislators had said the month-long debate which was held each year should remain unchanged and the necessary number of days should be allotted for the Second Reading and Committee Stage.
The Committee on Parliamentary Business was scheduled to meet last Thursday to make a final decision on the matter.
The Committee on Parliamentary Business was chaired by Speaker Mahinda Yapa Abeywardena. Others present were Deputy Speaker Ranjith Siyambalapitiya, Leader of the House Dinesh Gunawardena, Chief Opposition Whip Lakshman Kiriella, Mahinda Amaraweera, Susil Premajayantha, Wimal Weerawansa, Mahinda Samarasinghe, Rauff Hakeem, Gayantha Karunatilleka, Anura Kumara Dissanayake, and Mano Ganesan.
Secretary General of Parliament Dhammika Dasanayake and Deputy Secretary General and Chief of Staff Neil Iddawela were also present.
Finally, the Speaker on Thursday announced that the Committee on Parliamentary Business had decided to debate the Appropriation Bill for 2021 for 21 days and not 19 days as stated in the news release.
SJB MPs at PCoI
Meanwhile, several Opposition SJB members were summoned before the Presidential Commission of Inquiry (PCoI) on political victimisation last week.
Five SJB MPs arrived at the PCoI last Monday to give evidence .
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SJB MPs stage silent protest outside the Presidential Commission of Inquiry, 09 November 2020[/caption]
Accordingly, MPs Harin Fernando, Nalin Bandara, J.C. Alawathuwala, Mayantha Dissanayake, and Sujith Sanjaya Perera arrived at the commission.
They had recently filed a complaint with the Commission to Investigate Allegations of Bribery or Corruption (CIABOC) over the alleged misconduct of the PCoI on political victimisation.
The Commission had thereafter summoned the five SJB MPs, accusing them of making defamatory remarks on the PCoI.
SJB General Secretary MP Ranjith Madduma Bandara had told the media that the Commission had not conducted an inquiry on the five MPs who were summoned over the matter.
Instead, the PCoI had informed the group that the matter had been forwarded to the Court of Appeal.
The SJB is continuing with its grassroots-level campaign for the programme on building an opposition for the people.
It is in this backdrop that Kalutara Mayor Ameer Nazir and 11 other local government members joined the SJB after meeting with Opposition Leader Sajith Premadasa.
SJB MPs Dr. Rajitha Senaratne, Kumara Welgama, and Ajith P. Perera had also attended the event.
ACMC undecided
The SJB last week received an official communication from one of its coalition partners, the All Ceylon Makkal Congress (ACMC) on Tuesday (10), informing them that the party could not take action against two of its members who voted for the 20th Amendment last month until Party Leader Rishad Bathiudeen was able to preside over a meeting on disciplinary action.
“I wish to inform you that the political authority of the party is either handicapped or unable to take any decision with regard to the conduct of the said parliamentarians at this juncture, in view of the fact that the Leader of the All Ceylon Makkal Congress is unavailable to preside over the meeting to deliberate on the matter due to him being incarcerated over a court case,” ACMC Secretary General S. Subairdeen had written to SJB General Secretary Ranjith Madduma Bandara.
The ACMC had stated that the party had taken serious note of the conduct of the two parliamentarians. However, the ACMC said, given the circumstances, the party could only inform the SJB on the matter after the release of Bathiudeen.
The SJB had taken disciplinary action against eight MPs who voted in favour of the 20th Amendment, after it had decided to vote against it at the SJB parliamentary group meeting. The SJB had called on its coalition parties to take further action against errant MPs as well.
The Fort Magistrate’s Court on Friday further remanded Bathiudeen until 25 November.
Bathiudeen was remanded on 20 October following his arrest by the Criminal Investigation Department (CID) at a residence at Ebenezer Place in Dehiwala. 
