Budget 2014: Is The Distribution Of Distributable Income A Disaster?
By Hema Senanayake - December 6, 2013
Hema Senanayake
Previously I wrote that the Budget 2014 would stabilize the rupee and facilitate private credit growth which will help the economy to grow. This stability will achieve through the proposed increase of foreign borrowing. I pointed out that any proposal to increase foreign borrowing must come with a promise to increase the inflow of dollars through non-credit sources in future because foreign borrowings come with an obligation to pay them back in dollars.
However, addressing the issue of the stability of currency, while ensuring private credit growth, is one important aspect of the budget. This objective will achieve from the Budget 2014 under the proposal made to increase foreign borrowing together with the proposal made to reduce domestic borrowing to fill the budget deficit which is at 5.2% of GDP. What is good is good and hence must be acknowledged so.
Another important aspect or area of the budget is to relieve the economic suffering of the people. People expected some relief from the budget. It seems they did not get what they expected from the budget. Many people and the political opposition expressed their disappointment about it. If this is true, which I think is true, then the simple conclusion I would make is that the distribution of distributable income is a disaster. Here I use a term call “the distribution of distributable income” instead of simply saying “the distribution of income.” You may think from the term I used above implies that there is a certain income that should not or cannot be distributed. That is right. The Budget 2014 did a poor job in regard to the “distribution of distributable income.” What is bad is bad and hence must be pointed out so. Read More
Pugwash Conference Hails Interim Agreement On Iran
December 6, 2013
The Pugwash Conferences on Science and World Affairs has welcomed the interim agreement on the Iran Nuclear issue as a first step towards lessening tensions in the region and strains on the nuclear non-proliferation regime.
Jayantha Dhanapala
Pugwash, headed by former Sri Lankan Diplomat and Ambassador Jayantha Dhanapala who is its President said the agreement was “historic and long overdue.”
“In particular, we welcome Iran’s acceptance of increased transparency as part of its effort persuasively to demonstrate its repeatedly asserted claims about the peaceful nature of its nuclear program,” Pugwash said in a statement.
Following is the full text of the statement:
The 24 November 2013 interim agreement on the Iran nuclear issue is an historic and long-overdue first step in lessening the tensions in the region and the strains on the nuclear non-proliferation regime. We applaud the leadership and commitment it took on all sides, and acknowledge that much work remains to be done as the parties move forward during this interim period to establish a lasting accord. From its inception during the height of the Cold War, Pugwash has consistently promoted the need for dialogue to resolve outstanding issues in regions where nuclear risks are present. This interim accord shows that it is possible to make progress when parties come together in a spirit of goodwill to find peaceful compromises to challenging problems.
