UPFA ‘handout’ manifesto could cost over Rs. 400 bln to implement
View(s):The election manifesto of the United People’s Freedom Alliance (UPFA) with a host of ‘handouts’ to be given within 30 days of capturing power would cost the Treasury much more than the usual spend in a national budget.
A comprehensive analysis by some financial experts with national budgeting experience, considering the financial implications to any government, put down the cost of 20 of the main proposals at Rs. 404.2 billion, more than four times the total amount of Rs. 95.5 billion set for expenditure measures in the last 2015 interim budget. There were no revenue proposals given on how such funds would be raised.
According to the Revised 2015 Budget, total expenditure and net lending was Rs.2,990 billion of which recurrent expenditure was Rs.1,465 billion and capital expenditure and net lending was Rs.685 billion.
The analysts also looked at the UNP-led coalition and JVP manifestos but these didn’t have any figures. The UNP document was more related to long term economic and infrastructure-related development over a five year period which was incalculable in terms of numbers. Some of the UPFA proposals were included in previous budgets like the guaranteed price for paddy, tea, increase in salaries of public servants and cost of living, all of which this time had an increase of a certain percentage of what is currently offered.
The manifesto was drafted by a team that included former Central Bank Governor Ajith Nivard Cabraal, former Securities and Exchange Commission Chairman Nalaka Godahewa, former Mass Media Ministry Secretary Charitha Herath and former State Mortgage and Investment Bank Chairman Jagath Wellawatte among others. The proposals are reminiscent of the subsidies’-strong budgets during the Mahinda Rajapaksa regime which came under criticism from economists and multilateral lending agencies owing to the rising debt component.