Rs. 21 b supplementary allocation presented to P’ment

Wednesday, 9 October 2019 00:22 - - {{hitsCtrl.values.hits}}

Rs. 101 m in taxes for two vehicles for President Sirisena also placed before House
Given cost, Opposition questions whether “spaceships” purchased
Insists unfair that public has to bear tax cost
Other allocations include Rs. 1.5 b for urban regeneration program, Rs. 666 m flood relief, Rs. 150 m for Golden Key depositors

By Ashwin Hemmathagama – Our Lobby Correspondent

A Supplementary Allocation of Rs. 21,415 million was presented to the Parliament yesterday seeking House approval for provisioning 47 different programs and Rs. 101 million for payment of tax on two vehicles for President Maithripala Sirisena’s use.

Using the Supplementary Allocation, the Government has also sought House approval for the additional allocation of Rs.101 million provided for the payment of Luxury Tax on the importation of two security vehicles for the use of President Maithripala Sirisena.

Demanding an explanation for the Government spending a considerable amount on Luxury Tax for the two vehicles imported for the use of President Sirisena, Opposition lawmaker Bimal Rathnayake said: “Even though we are not against providing security to the President, an allocation for Luxury Tax is made to shoulder the importation of two vehicles for the President. The Luxury Tax per each vehicle exceeds Rs. 50 million. We would like to know the details of these particular vehicles. We wonder if it is some sort of spacecraft.”

“The Government allocating Rs. 130 million to establish Green Clubs in the 25 Districts in par with Budget proposals becomes a political matter when an election is announced,” he added.

The key allocations looking for House approval includes the additional allocation of Rs. 1,595 million to provide for the foreign and domestic components related to the Urban Regeneration Program which is financed by Asian Infrastructure Investment Bank under the loan agreement signed on 25 April.

Based on the Cabinet Decisions taken, Rs. 666 million will be allocated to settle outstanding bills pertaining to projects for rehabilitation of the areas affected by floods and landslides in Matara District, which started before 31 December 2017. A sum of Rs. 150 million will also be provided for the repayment of Security Deposit Holders of the Golden Key Credit Card Company Ltd. as per a Cabinet decision reached on 17 June 2015.

The Ministry of City Planning, Water Supply and Higher Education will be allocated Rs. 1 billion for township development in lagging regions. Rs. 1.24 billion is allocated to implement the Budget Proposal on interim allowance of Rs. 2500/- for Public Sector Employees.

According to Speaker Karu Jayasuriya, a two-day debate is also scheduled on the matter on the 23 October.

However, the supplementary provision presented yesterday did not change the approved total expenditure limits of the annual estimate by Parliament. The allocation of such purposes has been made under the Project of Budgetary Support Services and Contingent Liabilities of the Department of National Budget and it is under the limit of the Approved Annual Budget.

Therefore, either the borrowing limit or the maximum limit of total expenditure will not be increased due to the granting of these supplementary provisions. The purpose of this provision is to facilitate the smooth conduct of public finance management in a more efficient and effective manner.