Columns

Last Tuesday’s commemoration of the 77th anniversary of gaining independence was low-key, less costly, more participatory, and had a cultural orientation. It did not have the parade of military hardware and air display. The celebration was less costly, more participatory and cultural.

The celebration was not confined to Independence Square or Colombo; it was nationwide with the participation of all ethnicities and religions. The singing of the national anthem in Tamil was symbolic of the resolve for national unity.

National unity

In fact, President Anura Kumara Dissanayake has announced a day of national unity in October. This is expected to display the varied cultures that comprise the nation as well as items of cultural fusion. The achievement of national unity would be an immense boost to economic development. The foundation has been laid at last.

Frugal

This year’s celebration at Independence Square saved public expenditure and was a demonstration of the government’s intent of reducing expenditure by curtailing waste. Furthermore, the omission of the armed vehicle parade and air display saved fuel import costs.

Military culture

The exhibition of military hardware on parade is a caricature of British and Western military might and ceremonial traditions. It is an imitation of our erstwhile colonial rulers. In addition, it was a costly and irrelevant imitation for a country that has no enemies, is in debt, and has a third of its population in poverty.

Military culture

It is a curious fact that for 77 years we did not think it fit to celebrate our independence in a manner reflecting our diverse culture. Instead we aped the military culture of those who subjugated us with pride, pomp and pageantry.

India

Another curious fact is that even our great neighbour, India, which is nationalistic and gained its independence a few months before us in 1947, did not think it fit to celebrate its independence with such military pomp and pageantry, but in a more cultural manner sans a military display.

Indian military might

India is, however, a big military power with border disputes with its neighbours, and, therefore, the display of its military might may serve a purpose. Whether this military display is a necessary ritual when its military strength is well-known is another matter. Nonetheless, India’s recent commemoration of its Republic Day was a combination of a military parade and an impressive cultural pageant.

Break from the past

This year’s independence commemoration was somewhat of a break from aping the military culture of the very countries from which we had gained independence. Hopefully, it is an indication that the JVP/NPP government would depart from aping Western colonial practices and adopt national cultural traditions to celebrate national events.

This year’s independence commemoration was without an air display, a long military parade, and a display of military hardware. This was expected to save a significant amount of public expenditure.

Frugal

The main reason for not having a grand parade and an air display was the need to cut public expenditure. It was also symbolic of the government’s policy of reducing unnecessary expenditure and adopting austerity measures.

Expenditure

Although the financial saving this year would not be much in comparison with the magnitude of the fiscal problem, the symbolic gesture of the government’s resolve to curtail expenditure was significant.

Significance

In terms of fiscal magnitudes, the saving is not much, but the intent of being frugal with public finances is significant. Not only is the saving of expenditure significant, but also the symbolic value of the government’s determination to cut public expenditure.

Apart from this frugal measure, there have been many other expenditure curtailments recently. These include the curtailment of perquisites (perks) enjoyed by MPs.

Fiscal deficit

The country’s fiscal bind is such that even such savings may matter. The government is firmly committed to cutting what has been described as wasteful expenditure. A good example of it is the country’s expenditure on foreign missions in countries of little or no consequence, such as the Seychelles. The focus of the country’s foreign missions should be economic diplomacy—the promotion of the country’s exports, tourism, and economic interests.

Overstaffing

Furthermore, there has been an overstaffing of overseas missions with relatives and friends. There are other instances of wasteful expenditure that the government intends to eliminate. The strengthening of our diplomatic service with professionals is vitally important for the country’s economy and development.

Fiscal prudence

The preoccupation with frugal measures should not detract from the need to enhance revenue and reduce expenditure to achieve a fiscal deficit of around 5 percent of GDP. While austerity measures are significant for the country’s finances, these alone cannot ensure fiscal stability. In fact, the austerity measures, though important, cannot resolve the nation’s fiscal bind. Measures to increase revenue collection are imperative.

Privatisation

This is especially so as the government has decided to not privatise loss-making state enterprises. This would render the reduction of the fiscal deficit a more onerous task in several ways.

It would increase government expenditure till such time as these enterprises are turned around, if at all. In other words, it will deny the government a source of revenue as well as increase its expenditure and widen the fiscal deficit. Even if the government is able to turn around these SOEs in the coming years, they will be a drain on the public finances until such time.

Recapitulation

The commemoration of our regaining independence 77 years ago in a frugal manner was commendable. In the future too, it would be more meaningful to celebrate it in a more appropriate indigenous manner. It could be an occasion that reflects our rich and varied cultures and an opportunity to foster national harmony.

Although it was a measure to reduce government expenditure, its impact was symbolic rather than financially consequential. The saving of an estimated Rs 22 million is small in the context of the total government expenditure. Nevertheless, its symbolic value could be significant.

However, it must not detract from the need to prune expenditure substantially while increasing revenue to reduce the fiscal deficit to around 5 percent of GDP. This is a tough task given the promises of increasing salaries and pensions, poverty alleviation and social security, increasing subsidies, and not privatising SOEs. The failure to achieve a measure of fiscal consolidation could hamper economic recovery and development.

Conclusion

Let us hope that President Dissanayake’s confidence that Sri Lanka can evolve into a model state of equality and freedom will be realised.