Not many Sri Lankans pleased with 2015 Budget, BT email poll reveals – Budget 2015
View(s):Just over 50 per cent of respondents in a quick Business Times (BT) email poll concurred that Friday’s Budget 2015 was a ‘good one’ reflecting concern among others that this is a pre-election budget with short-term decisions
Asked whether this is a good or bad budget, 53.19 per cent said YES while 36.17 per cent said NO and 10.63 per cent were UNDECIDED.
Just 23.4 per cent of the respondents said Cost of Living would reduce while 72.3 per cent said this won’t happen. On whether the budget is good for business and economic growth, 63.8 per cent responded with NO, 19.15 per cent were UNDECIDED while only 17 per cent said YES.
The poll questions were sent out to various sections of society on Friday night soon after the budget presentation ended and the Business Times received nearly 350 responses by 9 am on Saturday when the poll closed due to newspaper deadlines
Here is a cross section of the comments received.
On whether this is a good budget:
- A case of offering the carrot before the horse!!
- It is, from a short term point of view. But it depends on whether our people are still gullible enough to see favour in vote-catching gimmicks of desperate politicians.
- Favourable for state workers and the military. The proof will be in the eating. They are getting cheap motorcycles while private sector workers have to pay through their nose.
- Mark my words – all these “goodies” will be taken back after January 2015.
- “Yes” in the short term and “no” in the medium to long term as the fiscal and monetary issues of the past and present unravel.
- While on paper it looks good, there is no solid / transparent/tangible plan behind the proposals. This is mainly done to woo the voters for upcoming elections.
On whether COL will come down:
- Proposed price cuts are a pre-election gimmick and COL will rise soon after elections as price cuts are unsustainable.
- It appears to be financially unsustainable due to massive deficits. Revenue forecasts are unrealistic.
- For a brief period it would not be sustainable.
- It may but when tax revenues are expected to go up to Rs.1,654 million from Rs. 1,394 million, then this has to come from the people. Cost of living will only ease from better monetary policy such as by appreciating the exchange rate.
- In reality the cost of living is escalating on a continuous basis. But they are known to manipulate statistics and artificially paint a positive picture.
On whether business and the economy would benefit:
- No. This is only good for political gains.
- The targeting of supermarkets is bad and shows increased interference by the rulers on businesses catering to special interest groups close to the government. There was also more interference in business in the form of forcing hotels and new constructins to use local products.
We are moving more towards Germany style, Zwangswirtschaft. This is in overall line with the minority bashing and the interventionist/nationalist policy.
- The answer is no as the impact on business and economic growth is assessed on a sustainable long term.
General comments:
- In my opinion, the budget has addressed the groups who strike. It has taken into consideration their plight and demands, thus attempting to resolve the current situation, in anticipation of the upcoming election.
- Loan facilities are extended to few identified groups, which may provide a benefit, but at the same time it also burdens others.
- No significant budget proposals addressed in respect of Business and Technology, and in the case of the latter, the proposal is vague. It is questionable whether the request from the supermarkets to reduce prices by 10 per cent for commodities will be accepted. Inadvertently, due to the bargaining powers of the supermarkets, they would pass the burden to the supplier.
-Infrastructure Development: Rural road development is approximately 20 per ceny of the total expenditure, thus presumably much of the balance is allocated towards social welfare, salaries, loans etc. Surprisingly, the budget is silent on the expenditures for current and ongoing projects.
- Cost of Living: The Cost of Living Adjustments are minimal, when considering the average income. Current average per capita (2013) is at $2000, which is approximately Rs. 20,000 per month.
- Health: Only certain groups of ailments have been addressed. Whereas, any infrastructure developments in areas of health should benefit a much larger groups.
- We were expecting this kind of ‘wool over the eyes’ budget in light of the forthcoming elections – No clarity on how it will be implemented.
- It looks more like a budget delivered on ‘wishful thinking’ rather than a budget driven by giving careful consideration to macro and micro economic planning and management in the long-term.
- A national budget is a conceptual / macro financial approach of the nation, predominantly focusing on the next 12 months, while there can also be mid and long term approaches incorporated as well. Thus, it must focus on national production – national income – national debts repayment and tangible national reserves and national deficit. It should not look like an election manifesto. It can focus on budget allocations of each ministry, but what each ministry plans to do with that allocated fund is micro finance at national level.
- Ideally, a national budget should not talk about distributing bicycles and motor bicycles, Rs. 500 increase for employees or making casual employees permanent etc. It clearly focuses on insignificant concessions at national level (indirectly election focused or popularity oriented).
- Many of the measures are to give loans, while some of them are not practical .. e.g. pension scheme to 3-wheel drivers and garment factory workers.