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By Sandun Jayawardana 

Is Budget 2025 a revolutionary people-friendly budget, or a mere continuation of the International Monetary Fund (IMF) aligned policies of the previous government? Government and opposition MPs offered vastly different interpretations of the National People’s Power (NPP) government’s first full budget as the debate on Budget 2025’s Second Reading got underway this week.

Speaking in Parliament on Friday, Opposition Leader Sajith Premadasa compared the contents of Budget 2025 with those of the NPP’s election manifesto “A Thriving Nation, A Beautiful Life.” He said it was the view of the main Samagi Jana Balawegaya (SJB) that the budget did not reflect the mandate obtained by President Anura Kumara Dissanayake and his NPP.  

He observed that while the NPP had pledged in its manifesto to present an alternative debt sustainability analysis, it had completely ignored this pledge and instead presented a budget that heaps massive burdens on the people and restricts benefits they should receive. He claimed there was enormous confusion on the pay increases announced by the government, with many unsure as to how much they are getting and when.

The government had the opportunity to go down a new path by presenting a more people-friendly budget while still working within the IMF’s programme for Sri Lanka, Mr Premadasa said. “Instead, the government has chosen to completely betray the mandate given to it.”

Mr. Premadasa further argued that though the President assured in his Budget Speech that Sri Lanka will be able to restart meeting its debt service payments from 2028, Budget 2025 does not explain how the government intends to maintain a high level of economic growth necessary to enable the country to restart paying off its debts. “While a lot of statistics have been presented, they are just fairy tales. We should be realistic when presenting such stats,” he added.

Public Security and Parliamentary Affairs Minister Ananda Wijepala however, countered that Budget 2025 will actually serve as a base towards fulfilling the resounding mandate obtained by the government during the last two elections. He claimed the most noteworthy aspect of the government’s budget was that it was a people-friendly budget that did not heap more taxes on the people. “In the past, the budgets tended to heap tax burdens on the people than provide them with relief. In order to generate revenue, they mostly sold national assets, privatised state owned enterprises and sold or leased government owned plantations. That is what we saw in previous budgets. In contrast, I see Budget 2025 as a fantastic budget that has brought relief to the people rather than burdens. This is a people-friendly, progressive budget,” he claimed.

He added that Budget 2025 is one that has introduced a host of proposals aimed at expanding the country’s economy, which had contracted significantly due to the economic crisis.

Deputy Minister of Agriculture Namal Karunanathna disputed claims made by the opposition leader that the budget had heaped burdens on the general public. He pointed out that ‘Aswesuma’ benefits have been increased for low-income groups while new programmes have been introduced for school children to help them purchase books and stationary for school. The Mahapola scholarship scheme has been increased while public servants have received a large increase in their basic salaries. Other proposals include those aimed at improving pre-school education, the quality of life of students in orphanages and programmes to help the disabled, he added. The fertilizer subsidy for farmers meanwhile, had been increased by Rs. 20, 000.

If there is a group who have been burdened by the budget, it is politicians who have used previous budgets to enrich themselves, Mr Karunarathna claimed. “MPs, Ministers, Prime Ministers and Presidents allocated funds for themselves through previous budgets. Their expenditure heads totaled in the millions. It is those benefits that have been clipped under this budget,” the deputy minister added.

Is the government believes that it can develop the country’s economy without introducing a new Constitution to resolve the national question, it will never happen, Tamil National Alliance (TNA) Batticaloa District MP Shanakiyan Rajaputhiran Rasamanickam told Parliament. He charged that the budget did not contain any proposals aimed at attracting Foreign Direct Investments. He also challenged the NPP to use its 2/3 majority and executive power to cancel the tax exemptions given by previous governments to their associates. He claimed canceling these tax exemptions could have resulted in revenue amounting to Rs. 966 billion.

Due to the political stability that the government has established in the country and with the economic situation gradually improving, the country is attracting foreign investors whose investments are vital towards strengthening the economy, Foreign Minister Vijitha Herath said during the debate yesterday. “We are now attracting investors from India, China, countries in West Asia, the US and countries in Europe. We are laying the groundwork for them. Many agreements have already been reached to commence these investment projects within a short period,” he added.

Mr Herath also welcomed the initiative being undertaken by the new Trump administration in the US to end the war between Russia and Ukraine, which has had a negative impact on world peace and economy. He noted that such a peace would also helped strengthen the economies of countries such as Sri Lanka. Mr Herath also stressed that despite claims that Sri Lanka could become isolated under an NPP government, it has received strong support from countries around the world.

The minister also said the government would follow through with its pledge to introduce a new Constitution for Sri Lanka that would then have to be approved by the people at a referendum. The Prevention of Terrorism Act (PTA) will be abolished with new legislation being introduced to replace it, while the Online Safety Bill will be amended according to the recommendations of the Supreme Court and other recommendations, he further added.

The debate on the Second Reading will continue till Tuesday (25), with a vote scheduled for 6.00pm. The committee stage debate will commence from Thursday (27).