UNP parliamentarian Rohitha Bogollagama had already sworn in as Minister for Advanced Technology and National Enterprise Development when he crossed over.

Amidst the cheering of fellow parliamentarians the finance minister said, “Others also have six more days to walk over.”

Commenting on the cross over former deputy finance minister Bandula Gunawardana said, “This is all part of a plan by Chandrika and her allies to create a dictatorial regime.”

Asked whether there would be any more crossovers Bandula Gunawardana said “Given the consequence of the budget it might turn the other way around. Inevitably inflation is going to rise and the government is very low on foreign exchange reserves. All this is going to be a massive burden on the people.”

Pay rise

The finance minister presented proposals to increase salaries of government servants by forty percent. Initially a minimum increase of Rupees 2,500 will be paid before the end of December and the balance will follow.

Presenting the maiden budget proposals of the United Peoples Freedom Alliance (UPFA), Minister Amunugama said that there are many who evade paying income tax and an innovative taxing system will be introduced to net such evaders.

New tax

Those who have residential electricity and telephone bills of over ten thousand, those who pay monthly credit card bills of over 25,000 and those who purchase air tickets for foreign air travel as well as those who own vehicles will have to forward an annual tax return. Non compliance will be a punishable offence.

'Progressive'

Financial journalist Asantha sirimanna said overall the budget proposals were progressive and innovative. He said, “The measures taken to strengthen the state sector should be welcomed.”

Economist Saman Kelegama identified the new Value Added Tax (VAT) proposals as 'pro poor'. He said “According to the new VAT proposals 18% tax will be charged for luxury goods and for essential items it has been reduced to 5%”

Trade unionist Bala Thampo pointed out that it is not fair to confine the salary increase to the state sector. He said that it is the responsibility of the government to see that private sector also falls in line with the proposed increase.