by

Saman Indrajith

*Rs. 25,000 minimum monthly income for public servants

*CoL allowance up by Rs. 2,200; Rs. 5,000 allowance for doctors

* Allowances for university teachers and non-academics increased

* University intake to be increased to 100,000 by 2020

* Employer’s EPF contribution increased to 14%

* Special tax on vehicle imports; USD 100 per casino entry

* Guaranteed price of paddy up from Rs. 34 to Rs 40 per kilo

* Basic minimum salary of Rs. 10,000 for private sector

* 5,000 new teacher assistants to be recruited

* Mahapola grant increased to Rs 4,000

* Economic growth of 8.2% expected

* Budget deficit to be reduced to 4.6% of GDP

President Mahinda Rajapaksa yesterday presented his tenth budget in Parliament. Having presented the budget for the next fiscal year, a smiling President Mahinda Rajapaksa asked the opposition, “How is the Budget presented by a godaya [a country bumpkin]?”

He was responding to a UNP MP who had claimed that the country was being ruined by a cabal of ‘country bumpkins’. Earlier, the government advanced the presentation of the budget by about one month in view of an early presidential election expected during the second week of January next year.

President proposed to increase the minimum monthly income of public servants to Rs. 25,000 inclusive of a 2,200-rupee cost of living allowance increase with effect from January 2015. The special allowance for state employees will be added to their basic salary while the minimum salary will be increased to Rs. 15,000 per month.

The cost of living allowance provided to all state employees will be increased by Rs 2,200 to Rs. 10,000 from January 2015. Thereby, the minimum monthly income of a government sector employee will increase to Rs. 25,000.

The President proposed that the minimum wage of private sector employees be increased to Rs. 10,000 and an increment of Rs. 500 be given to private sector employees drawing less than Rs. 10,000.

Allowances for university lecturers, non-academics, doctors and judicial officers will be increased.

The government plans to increase the university intake to 100,000 by 2020.

The EPF contribution from the employer will be increased upto 14%.

Those whose children are serving in the armed forces and police will be paid Rs. 1,000 monthly with effect from January 2015.

Mahapola scholarship stipend will be increased from Rs. 2,500 to Rs. 4,000 from January next year.

Monthly allowance for those who have passed the Grade Five Scholarship examination will be increased from Rs. 500 to Rs 1,500 from January next year; the number of recipients will be increased from 15,000 to 25,000.

President Rajapaksa proposed a special tax on vehicle imports, and USD 100 casino entrance tax.

The Value Added tax (VAT) will be reduced to 11 per cent from the current 12 per cent and the maximum Pay As You Earn Tax (PAYE) rate will be fixed at 16%.

Bank of Ceylon will be recapitalised by Rs. 10 billion next year and USD 150 million will be reinvested in Sri Lanka’s national carriers SriLankan Airlines and Mihin Lanka in 2015.

Guaranteed price of paddy will be increased from Rs. 34 to Rs. 40 per kilo while seed paddy is to be given free of charge to farmers.

Among the other proposals the President made were a pension scheme for apparel sector employees, further continuation of the fertiliser subsidy scheme to provide all varieties of fertiliser at Rs. 350 per 50 kg bag for paddy cultivation, a monthly allowance of Rs. 3,000 for kidney patients, free medical checkups for every citizen, and a monthly allowance of Rs. 2,500 to pre-school teachers.

The guaranteed price for locally produced fresh milk will be increased to Rs. 60 per litre while the price of locally manufactured milkpowder will be reduced by Rs. 100 per kilo. Locally made yoghurt will be reduced by Rs. 3.

Samurdhi benefits will be increased to Rs, 3,000 for four-member families and Rs. 2,000 for three-member families.

A pension scheme will be introduced for Sri Lankan nationals employed abroad.

Infant formula will be sold through Sathosa outlets at a subsidized price.

President Rajapaksa proposed pension and insurance schemes for three-wheeler drivers, a monthly grant of Rs. 3,000 each to all disabled persons and an increase in the monthly allowance for Senior Citizens up to Rs. 2,000 per month.

Allowance for 1980 July Strikers will be increased by Rs. 1,000.

It has also been proposed to provide government sector jobs for 50,000 students, after a special training, who don’t gain enough marks to enter universities and motorcycles for police constables at a concessional price of Rs. 50,000 each.

Rs. 700 mn has been allocated for the development of the Maharagama Cancer hospital. Special programmes to develop cancer units in Anuradhapura and Ratnapura hospitals. Special medical clinics will be held at religious places in Grama Sevaka Divisions countrywide. Rs. 500 million has been allocated for this purpose.

Rs. 2,000 million will be allocated for developing irrigation projects in the dry zone and 500 new buses transported to improve the public transport sector.

Electricity tariffs for small and medium-sized enterprises (SMEs) using fewer than 300 units will be reduced by 25% while other sectors and industrial sector will get a 15% tariff reduction.

Total government expenditure is estimated at 2,210 billion rupees, and the budget deficit is Rs 521 billion to be financed with Rs. 215 billion from foreign sources and Rs. 270 billion from domestic sources.

President Rajapaksa said he expected to achieve an economic growth of 8.2% while reducing the budget deficit to 4.6% of GDP.

The Second Reading stage commenced with President making the budget speech yesterday and the debate thereon will commence today. The debate on the Second Reading stage will continue till Nov. 01. The vote on Second Reading stage is scheduled to be taken at 5.00 pm on Nov. 01. The Committee Stage debate on Budget 2015 is scheduled to commence on Nov. 03 and will continue daily except on Sunday till Nov. 24. The final vote on Budget 2015 will be taken at 5.00 pm on Nov. 24.

Courtesy: The Island