Scarecrow Budget

The Finance Minister has proposed import substitution to ease pressure on the exchange rate and inflation. Left leaning economic policies that advocate a similar interventionist role for the government however can scare investors. The Finance Minister has proposed import substitution to ease pressure on the exchange rate and inflation. Left leaning economic policies that advocate a similar interventionist role for the government however can scare investors. Foreign capital is normally attracted by countries with continuity in market based economic policies.

Last week the Finance Minister told LBR the country needs a home grown economic policy.

“In other words what was called a UNF budget was in fact is a construct of the World Bank and IMF. We took a different line. We took the full ownership of the budget,” Finance Minister Sarath Amunugama said.

He outlined the government’s home grown economic policy, while rejecting neo-liberal polices of the past that have benefited a minority.

He abandoned the Choksy-style short budget speech too, for a long winded one that spelt out policy, attacked political opponents and spelt out in great detail the failures of the UNF.

Somewhat like the old Ronnie De Mel budgets in t