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| Sunday, 21 November 2004 |
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Grass-roots comments on Budget 2005 by Ranga Jayasuriya The public view the Budget proposals as pro-poor. Small scale businessmen in the town believe the increased purchasing power of the consumer due to the increase of public servants' salary and reduction of VAT in essential items will trickle down to them, revitalising small businesses. Samanthi Perera, an employee of the Import Development Board said she was satisfied with the proposed salary increase, which amounts to 40 per cent, of which 2,500 rupees will be given from next month. "But, the extra working hour is a problem" she said. She welcomed the reduction of VAT from essential goods, adding:"People were living with an enormous burden, this will give them some relief." Describing the budget as a "Robin Hood budget", Ranjith Kulasinghe who runs a shop selling electrical goods in Pettah, welcomed the reduction of VAT on essential commodities, at the cost of increased VAT on luxury items.This is a poor man's budget. There is nothing wrong in giving to the poor, what is taken from the rich," he said Kulasinghe said he was in agreement with the budget proposals, even though the increase of VAT on electrical items would have a direct impact on his business. But there are also dissenting voices. Azlan, who also runs a electrical goods shop, feared the increased VAT would further decline his business, already affected by the depreciation of the rupee against the US dollar. Sunil Jayantha, a three wheeler driver near the Fort Railway Station believed that "the budget would do good to the poor". He welcomed the VAT relief for lease payments for three wheelers. He said the budget had made a genuine effort to help the poor and lower class, but was doubtful whether these promises would be fulfilled. "We have to be on alert," he said. T. G. Sumanasiri, a king coconut seller opposite the Fort Railway station, was however not moved. "All benefits go to public servants, we, those who etch the day's living, got nothing," he said. Dissanayake, who runs a fruit stall in the Manning Market complained that the reduction of VAT on essential commodities had not yet trickled down to the consumer since the wholesale seller was still keeping it. He said during the past few months his business plummeted as the soaring cost of living reduced the purchasing power of consumers. With Budget having reduced the prices of essential commodities, he expressed hopes that, his business would pick up, people would buy more fruits. A retail seller in the Manning Market, M.I.M.Nizar contemplated that it would take a week for consumers to benefit from the reduction of VAT on essential commodities. "The prices of some goods have already come down. The wholesale price of one Kilo of dhal has reduced from 68 rupees to 61. price of the other commodities will also come down in the coming days," he said. Chamath Subasinghe, a shop keeper in Pettah charged that while increasing the salary of public servants, the government had caught up on it, by increasing the working hours. "This is an added exploitation," he said. Two soldiers, Corporal Abeyratne and Lance Corporal Mohan had a different opinion. "The extra-hour is justifiable given the amount of salary increase" they said, adding "after all we got to work more, if this country is to move forward". |
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