Public sector thrives as private sector strives

How long could the government continue to heap tax upon tax on the private sector, the engine of growth, and expect to sustain GDP growth in an economy already hit by the war?

Judging by the number of celebrations initiated, despite the country on a war footing, it appears this administration is lax, when it comes to financial discipline.

On top of that, it has been swelling the public sector, increasing salaries of public servants and granting perks and duty waivers, like nobody’s business.

Immediately after the fall of Toppigala, it was the Negenahira Navodaya (Re-awakening of the East), on top of the celebrations to mark the diamond jubilee of independence, we had the Deyata Kirula (crowning glory of the nation) and now the Carlton Motorcross in Tissamaharama, where the military depicted its weaponry and achievements in the war.

It is clear that the administration, more than finishing the war, is keen on gaining political mileage over military gains. It is indirectly asking the people to grin and bear the unbearable cost of living, as victory was imminent.

But, political and military leaders keep on shifting the goal posts when it comes to deadlines they set to defeat the LTTE. The August deadline has been shifted by more than a year.

This government, which started off well by giving the military a free hand to do its job, is now fighting the war to gain political advantage. A snap election before its popularity further wanes is being considered. The United People’s Freedom Alliance (UPFA) government will commence its final year in its first term in April.

More than half the revenue earned from taxes is consumed by the ever-increasing public sector salaries and pensions. Housing loan interest subsidies, tax free cars etc. are doled out to the public sector.

More than half (56 cents) out of every tax rupee collected went to pay tax free salaries of the public sector and pensions, making it easily the biggest cash flow item of the government.It is frustrating that private sector workers have to work several times harder than those in the public sector to pay for these people’s lifestyle.

It is a shame that garment factory workers and estate workers have to see 20% inflation (20% decline in their salaries) so that the government can keep their workers and themselves in the comfort zone.

The once profitable venture, Ceylon Petroleum Corporation (CPC), has been in the red for long, unable to collect even its dues from government establishments, including the military.

The CPC is now promising to provide retail gas at 10% less than the market price by mid April. It says it has been selling a by-product from the Sapugaskanda Petroleum Refinery to Laughs and Shell Gas, which use it to manufacture a percentage of LP Gas.

Why didn’t the CPC officials and Petroleum Resources Minister A.H.M. Fowzie contemplate this move all this while? We only hope this is not just another false promise like the oft-announced oil exploration moves, to keep the people content.

People are being gassed out by the rising gas prices despite the prices in the world market subsiding in January. The public would soon get blackouts when the Ceylon Electricity Board begins its hike in electricity rates. As they fight to have their daily bread, the poor and the middleclass are already vegetating with the rising cost of vegetables, meats and staple rice.