BUDGET SPEECH- UPDATES

Budget proposals-update

President Mahinda Rajapakse delivered the budget speech for the year 2013 today in the parliament. The summary of it is as follow:


Pension allowance will be increased by Rs.500/-
President stated that an allowance of Rs.500 will be added to the pensioners monthly.

Persons above 65 years to get Rs.5000/-
People of ages above 65 years to be given an allowance of Rs.5000/- monthly

Increase of 25% of tax on imported liquor
President stated that the tax on imported liquor and spirits will be increased by 25%

Allowance of public sector employees to be increased by Rs.1500/-
The President has stated that he has taken actions to increase the facilities of the government servants twice the amount of that was done in 2005 and that Rs 366 billion  has been set apart for it. Furthermore, he stated that it is a difficult to task. He also mentioned that he will establish a commission to solve problems related to salaries. A minimum increase of Rs.1500/- is been made and that Rs.750/- will be paid as a cost of living allowance and the rest amounting to Rs.750/- to Rs.2500/- will be paid as an extra allowance.

Rs125 billion rupees towards Health
The allocation for health for the coming year has been increased by Rs 125/ billion.

Increase of 4.1% towards education
The President has stated that monitory funds will be set aside towards education and that 4.1% of the GDP is to be set aside towards University students, lecturers and towards the development of overall educational facilities.

60 million rupees towards “Deyata Kirula”
Rs 60 million  has been set aside towards Deyata Kirula exhibitions which is proposed to be held will be held in Ampara, Polonnaruwa and Trincomalee in the year 2013.

Selling land to foreigners to be completely prohibited
The practice of selling land to foreigners as hitherto allowed has been completely prohibited.

Motor vehicle registration fee will rise
The motor vehicle yearly revenue license fees to be increased with effect from the beginning of the year 2013.

Tax for racing vehicles will be decreased
The current import tax for importation of racing cars to be decreased with effect from January 2013

Allowance for Small Tea Planters will be increased
The small tea small holders make their livelihood by growing tea plantations in small plots of land they own. An allowance will be paid to them to encourage the tea small holding industry.

Allowance for small planters will be increased
Allowance for small planters will be increased by Rs 30000/- to Rs 35000/- and quality Tea producers will be given further donations.

Rs 2000 million have been set aside towards the development of harbor
This sum will be utilized to further development of existing harbors.
 Imported milk powder to be taxed heavily

Import milk will be taxed further in order to encourage milk farmers to expand
their diary farming.  A liter of fresh milk to be sold for Rs.50/-

Equipment for those with special abilities to be made duty free

For those with skills in self employment to be allowed to import required equipment duty free.

Permits abolished for tapping kithul and coconut for jaggery

Permits will not be required for those engaged in tapping kithul and coconut for the manufacture of  jaggery.  Of course this will not apply for tapping coconut for toddy. The coconut tappers will have to obtain permits who are engaged in the toddy industry.

The President quoted that for the importation of sugar the government needs to spend a sun of Rs 450 million. This incentive is to decrease the amount spent on importation of sugar.

Religious and cultural activities to be promoted

 The President has proposed to allocate a sum of Rs 200 million for the enhancement of religious and cultural activities. This includes the development of community centre concept.

To absorb all government owned uncultivated paddy fields and to hand over to “Anda Goviya” to replant paddy

This will a boost to the paddy cultivators as they would get free land to grow paddy as it happened in ancient times. After the harvesting to buy a Kilo of raw paddy between Rs 32/-Rs 35/-

Allocation of Rs 1000/ million for those paddy cultivators who suffered losses

This amount is allocated to pay compensation for paddy cultivators who had to sacrifice all their crops owing to the drought, to pay their debts and for their existence.

Harmful agricultural fertilizers to be prohibited from importation

To compensate the President has proposed to allow importation of non harmful carbonized fertilizers and to sell to farmers at subsidized rates.  One Kilo of such  fertilizer to be sold at Rs 40/-per kilo.

Purification of drinking water

It is proposed to allocate a sum of Rs 126 billion to expand and to provide purified drinking water.

Development of Irrigation

It is proposed by President to allocate a sum of Rs 102 billion to improve and resurrect the irrigation system .It is also proposed to sell a 50 kilo bag of fertilizer for a sum of Rs 400/-

To allocate a sum of Rs 1000 million to harvest paddy fields

Until the Maha season to stop paying the loan installments and interest owing the banks

Allocation of funds for low income families

A sum of Rs 1500 million allocated for the allowances to paid for their nutrition.

Providing free clothes for poor children in rural areas

A sum to be allocated for the clothing of poor children in rural areas .To certain poor children shoes also to be provided.

Special allocation for the security personnel sectors

Rs 1000/- million has been allocated for loans to be granted for security personnel on a three year repayment period.
Uplifting the status of Police station buildings

A sum of Rs 950 Million is allocated to rebuild and refurbish Police station buildings to give a facelift. Increasing of their salaries too to be looked into.