Mangala mourns public finance muddle

Wednesday, 28 November 2018 00:00 - - {{hitsCtrl.values.hits}}

Insists Budget or Vote on Account must be passed before January for State sector payments

UNP MP Mangala Samaraweera yesterday expressed fear that the continuing political impasse could have a deep impact on the economy due to the unavailability of public funds as parliamentary approval was needed to appoint a Finance Minister who would be able to authorise payments from the consolidated fund.

Mangala Samaraweera

Cautioning the House of the financial crisis Sri Lanka may face in 2019, MP Samaraweera said: “It is a month now for this illegal government with no international recognition. Allowing this illegal government to move forward till the end of December would mean the entire nation will face a grave danger of financial collapse in 2019 in the absence of a Budget or a Vote on Account.”

Highlighting the importance of the warrant, which is to be issued by the Minister of Finance to make use of consolidated funds, MP Samaraweera held that in the absence of such a warrant, the State would not be able to honour any of the payments in 2019.

“During the last Budget I had issued this warrant with effect till 31 December 2018. There is no legal Finance Minister capable of issuing this warrant. The Christmas holidays are just around the corner. So a stable government should be established before the holidays, enabling the State to pay salaries, pensioners and Samurdhi payments due from January,” added MP Samaraweera.

The CoalitionGovernment, which was in power till 26October, had planned to table Budget 2019 on 5 November. The Appropriation Bill to provide for the 2019 financial yearwas presented in Parliament on 9 October with Samaraweera moving the motion seeking House approval to raise and spend Rs.4.376 trillion in 2019 to meet the capital and recurrent expenses of the Government, setting the borrowing limit atRs.1.944 trillion. Compared to Appropriation Bill 2018, it is an increase of Rs.394 billion.

The Appropriation Bill 2019, gazetted on 21 September 2018, to provide for the service of the 2019financial year, seeks passage to authorise the raising of loans within or outside Sri Lanka, for the purpose of such service; to make financial provision in respect of certain activities of the Government during that financial year; to enable the payment by way of advances out of the Consolidated Fund or any other fund or moneys, of or at the disposal of the Government, of moneys required during that financial year for expenditure on such activities; to provide for the refund of such moneys to the Consolidated Fund and to make provision for matters connected therewith. (AH)