President Gotabaya Rajapaksa has authorised the withdrawal of money from the consolidated fund making new financial allocations for the country’s spending agencies and ministries IN accordance with. with Article 150 Para (3) and (4) of the constitution.
This action has been taken towards the uninterrupted continuation of Government services and development activities for a period of three months from 06th March 2020.
A sum of Rs.1224.9 billion has been allocated from the Consolidated Fund for this purpose, Finance Ministry estimates showed.
Of this amount Rs. 713.8 billion has been set apart for recurrent expenditure while Rs. 511.1 billion allocated for capital expenditure.
Although the Vote on Account (VOA) passed in parliament in October 2019 has allocated necessary finances amounting to Rs.1470 billion to cover the government expenditure for the first four months of 2020, the President has authorised the treasury to revise the financial provisions and estimates of ministries and special spending units in accordance with the present needs.
Accordingly, a summary of estimates, prepared on the manner as to how provisions for each Ministry and spending agency are allocated for the next three months incorporating balance provisions of the Vote on Account 2020 has been prepared by the treasury.
The treasury has already disbursed the financial allocations made from the VOA from January 1st up to March 06 which is almost three months which was around Rs1102.5 (provisional estimates) and the balance of VOA for the month of April will be around Rs.367.5 billion.
Accordingly, a sum of Rs.1224.9 billion has been allocated from the consolidated fund for the months of March , April and May including the VOA balance money .
Therefore the treasury has to withdraw a sum of Rs.489.9 billion from the consolidated fund under the new warrant issued by President Gotabaya Rajapaksa by passing parliament as it has already been dissolved.
This was done in accordance with Paragraphs (3) and (4) of Article 150 provides for two exceptions to the general practice.
This applies to a situation in which Parliament has been dissolved before it has allocated funds through the budget. Then, the President is empowered to authorise expenditure for the maintenance of Public Services for a period of 3 months from the date on which the new Parliament is scheduled to meet.
The Department of National Budget will take measures to devise the detailed estimates which provide allocations under each object code and the programme summary in the future, a circular issued under the signature of Treasury Secretary S.R.Attygalle revealed.
A supplementary estimate to a vote-on-account, seeking to spend an additional 156 billion rupees an raise an additional 357 billion rupees in debt has been forced to withdraw after opposition refused support in parliament last month.
It was aimed at settling unpaid dues to contractors and others through the supplement to the vote on account.
Under this set up, after the dissolution of parliament the President was compelled to authorise the withdrawal of money from the consolidated fund in terms of provisions of Paragraph (3) of Article 150 of the Constitution, a senior treasury official said.
According to the Circular, the highest allocation of Rs. 682.3 billion has been made for the Finance, Economic and Policy Development Ministry.
The Healthcare and Indigenous Medical Services Ministry has been allocated Rs. 63 billion and the Defense ministry Rs.104 billion.
(LI)