JVP says the president has undermined the parliament's authority

The Janatha Vimukthi Peramuna (JVP) said that the president has resorted to 'fiscal terrorism' by taking over the financial regulation powers since Saturday.

JVP parliamentarian Sunil Handunnetti told journalists in Colombo that the president can only take over the said power at a time when the parliament is dissolved.

The MP added that the the president has taken over fiscal powers as the government is unable to propose a budget due to the financial crisis it is faced with.

Government rejects

The IMF, he said, has urged the government to maintain up to a seven percent deficit this year and reduce that to five percent next year as a condition of the bail out package provided to Sri Lanka.

"But the budget deficit is already more than eleven percent," he said.

	Minister says all parties agreed for a Vote on Account due to elections

The JVP is the main constituent party of the Gen Sarath Fonseka -led Democratic National Alliance (DNA).

But the government insists that it had done nothing improper.

"There was no issue of taking over financial powers," Fisheries and Aquatic Resources Minister Rajitha Senaratne told BBC Sandeshaya.

Stressing that all parties agreed for a vote on account due to elections, there is no time for the government to submit a budget proposal for an interim period as a new budget will be produced before the parliament in November, he said.

"For the forefathers of terrorism in Sri Lanka, the JVP, everything is terrorism," he said.

Minister Senaratne who said that the president wields powers to take such steps, denied that the inability to keep up with IMF directives has prevented the government from bringing a budget proposal to parliament.