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The election manifestos of the two main political parties promise a post-election paradise. However the implementation of these promises, especially those of the United People’s Freedom Alliance (UPFA), would weaken the economy and pave the way towards a financial crisis of Grecian proportions.

Once again these manifestos illustrate Lee Kuan Yew’s observation that elections in Sri Lanka are an auction of nonexistent resources. Economic resources are scarce while extravagant public expenditure without the means of mobilising resources is not viable, destabilising and catastrophic.

UNFGG manifesto
With a five-point programme to create a new country in 60 months, the manifesto of the United National Front for Good Governance (UNFGG) focuses on economic growth, fight against corruption, freedom for all, investment in infrastructure and Education reforms.

Its form of government is “a more competitive social economy that is a knowledge-based human friendly economy rather than a leftist and capitalist economy.” This mixed economy or a social market economy is likely to be an open market economy based on market forces with significant social interventions, as in UNP administrations of the past.

Democracy
No doubt the UNFGG’s main election campaign thrust would be the consolidation of the gains in democratic freedoms and good governance achieved by the January 8 Presidential election. The public could expect a superior commitment to good governance than that of the previous government.

The UNFGG promises to fight corruption. It will give more legal muscle to the Financial Crimes Investigations Division through a parliamentary Act and a new Police Act would be brought under the new Government to eradicate corruption. The UNFGG promises to take steps to introduce a new constitution and “measures to make maximum use of the devolution of power with everyone’s consent under a singular state.”

Education
Improving the Education System is a key objective. The five-point plan aims at allocating six percent of the GDP towards education and to establish new universities. Its objective is to create a more educated and knowledge rich generation and to ensure the “opportunity for all children to receive a higher education despite what their Ordinary Level examination results are.” The Party hopes to introduce a new education act and also pledges to prohibit the use of teachers for other tasks.

Promises
Its programme of Investing in infrastructure has an ambitious and dream like project of making the Western Province one mega city in South Asia and also build 50 thousand houses. It makes no mention of whether it would continue with the large infrastructure projects begun by the previous government such as the mega Colombo Port City Project.

UPFA programme
The United People’s Freedom Alliance (UPFA) manifesto under the theme ‘revive the country – start anew’ impliedly jettisons its past policies. The regime that ruled the country for ten years is promising to give what it could not give during its 10-year rule. There is a significant reversal in priorities regarding education and health on which higher expenditure is promised, while continuing with infrastructure development.

Promises
The UPFA manifesto has a plethora of extravagant promises. It covers education, health, public servants and estate workers. It promises to generate IT-based jobs for educated youths in the 18 to 35 age group, uplift livelihoods of low-income groups and to create self-employment opportunities. It includes resuming 58,000 stalled development projects.

It promises to increase wages of state sector employees, providing an allowance of Rs. 50,000 to youth above the age of 18 and a Rs. 10,000 allowance for students selected to universities for purchasing books. The Mahapola allowance would be increased to Rs. 6,000. It also includes a Rs. 3,000 allowance for private sector employees and promises to increase the basic salary of public sector employees to Rs. 25,000.

Education and health
An intriguing development in the UPFA programme is the new emphasis on education expenditure. The UPFA government that pursued a foreign-funded massive infrastructure programme that contributed to growth directly and indirectly was unable to finance education and health adequately. Now it promises to place a new emphasis on the improvement of education and health.
This recognition that improvement in education and health is vital, for the country’s development is a move in the right direction. How will the UPFA find the financial resources for this shift in policy while also financing large expenditure on welfare that it has promised?

Concluding reflections
With 86 years of universal franchise since 1931 and 12 parliamentary elections since independence, most people probably believe that at least some of these promises would be implemented though past election manifestos too were laced with unfulfilled or partially fulfilled promises.

This election is held at a time when the country is struggling to improve its democratic credentials as a heavily indebted nation with revenues barely adequate to even meet debt obligations. Despite this, the two main parties do not have specific plans on how the fundamental economic problems of inadequate revenues, large fiscal deficit, high foreign indebtedness and large trade deficits could be resolved for the economy to be resuscitated. Instead they are promising huge expenditures to increase employment, wages, student subsidies and increase expenditure on education and health.

The election manifestos of the two main parties are for most part a catalogue of extravagant promises that lack any consideration of their financial viability and are not credible economic policies and programmes. The economic viability of the extravagant promises is not their concern; canvassing votes for their election is the prime motive. The main political parties that are vying to form a government have ignored the fundamental economic problems, especially the financial stringency that they would have to face were they to form the government.

These parties have to be reminded that economic resources are scarce and limited and that extravagant public expenditure without the means of mobilising resources is not only unviable and impractical, but a road to economic failure. Neither of the manifestos outlines the manner in which the government would find the money to finance this massive expenditure to implement their promises. Their extravagant election promises of salary increases, more public employment and increased social expenditures would only aggravate the fundamental weaknesses of the economy unless there are policies to enhance government revenue. Finding the finances to fund even some of these promises is a Herculean task.