A "people's budget" in Sri Lanka, but one generous to the military
Colombo (AsiaNews) Sri Lanka's 2007 budget is intended to re-launch agriculture and rural areas, said President Mahinda Rajapakse. In his speech to parliament he also reiterated his government's commitment to negotiate with Tamil Tiger rebels but the budget also includes a considerable jump in defence spending.
One of the key points of the financial statement is the allocation of two billion rupees per year to a three-year agricultural development plan for the whole island.
Incentives will be provided to plantations and programmes focusing on the needs of the southern and eastern parts of the country will be set up.
The government in Colombo is also planning to encourage small dairy producers by removing barriers on powder milk imports.
It also wants to hire new graduates to fill 8,000 public sector vacancies in divisional secretariats.
Plans are on the drawing board to build some 60,000 new housing units in three years to replace existing slums.
Sri Lankans have great expectations for what the local press has dubbed the "people's budget".
Public opinion in fact reacted positively to the release of the budget estimates and is hopeful that concrete steps will be taken to implement the plans outlined in the document.
In addition to agriculture and small businesses, the government also plans to address the crisis in the country's north-east where the conflict between Tamil Tiger rebels and the army seems to have no solution.
Although defence spending will go up 45 per cent, President Rajapakse appealed to the rebels to come back to the negotiating table.
He reiterated his government's willingness to discuss any reasonable solution to the current impasse that would end the suffering of the Tamil minority. He did however blame the rebels for refusing to accept a compromise.
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