Budget to be presented on Nov 17

by Saman Indrajith

The new government would present its first budget to Parliament on November 17, Parliament sources said yesterday, adding that however the matter on the dates for the debate had not yet been finalised

 In the Appropriation Bill for 2021, Government expenditure for the year 2021 has been estimated at Rs. 2.6 trillion with the limit on borrowing set at Rs. 2.9 trillion.

 The government on 20 Oct. presented two appropriation bills to provide for the financial years 2020 and 2021. Along with the Appropriation Bill for 2021, the government presented a separate bill to cover the expenses for 2020 including the funds withdrawn from the Consolidated Fund under the authorisation of the President between March and August this year.

President Gotabaya Rajapaksa authorised the withdrawal of funds from the consolidated fund using powers vested in him under Article 150 of the Constitution, once in March and again in June during the period Parliament stood dissolved with elections postponed due to the COVID-19 outbreak.

Following the election victory of the SLPP in August 2020, Parliament approved a resolution to obtain around Rs 1.7 trillion to cover state expenditure for the next four months of the year by way of a Vote on Account .

The government expenditure for 2020 is estimated to be around Rs 2.538 trillion for the service of the period beginning on 1 January, 2020 and ending on 31 December, 2020. The limit on borrowings this year is Rs 2.65 trillion, according to the Bill.

In the Appropriation Bill for 2021, the government expenditure for the year 2021 has been estimated at Rs. 2.678 trillion with the limit on borrowing set at Rs. 2.9 trillion.

The highest allocations in both years will be for the Ministries of Defence, Highways and Provincial Councils.

The limit on borrowings for the financial year 2021 has been set at Rs. 2,900 billion with the details of such loans to be incorporated in the Final Budget Position Report which is required to be tabled in Parliament under section 13 of the Fiscal Management (Responsibility) Act No. 3 of 2003.

The highest allocations in the Budget will be for the Ministry of Defence topping Rs. 355 billion (Rs. 355,159,250,000) of which Rs. 316 billion (Rs. 316,806,290,000) will go for recurrent expenditure while capital expenditure at Rs. 38 billion (Rs. 38,352,960,000).

The State Ministry of Internal Security, Home Affairs and Disaster Management will get around Rs. 152 billion (Rs. 130,818,002,000 for recurrent expenditure, Rs. 21,647,040,000 for Capital expenditure).

The State Ministry of Provincial Councils and Local Government under which allocations are made to the nine PCs will get over Rs. 338 billion of which around Rs. 279 billion (Rs. 279,824,000,000) will be recurrent expenditure and around Rs. 58 billion (Rs. 58,250,000,000) capital expenditure.

The Ministry of Highways will get around Rs. 330 billion, of which around Rs. 329 billion (Rs. 329,999,590,000) will be capital expenditure and Rs. 185,415,000 recurrent expenditure.

The Ministry of Public Services, Provincial Councils and Local Government will get around Rs. 271 billion of which over Rs. 270 billion (Rs. 270,473,000,000) will be for recurrent expenditure and Rs. 1 billion (Rs. 1,250,000,000) for capital expenditure.

The allocation for the Ministry of Finance is around Rs. 157 billion with recurrent expenditure amounting to over Rs. 100 billion (Rs. 100,338,845,000) and capital expenditure stands at Rs. 57 billion (Rs. 57,264,870,000).

The Ministry of Education will get over Rs. 126 billion with over Rs. 102 billion (Rs. 102,670,000,000) allocated for recurrent expenditure and around Rs. 23 billion (Rs. 23,870,000,000) for capital expenditure.

The Ministry of Health has been allocated around Rs. 159 billion but the bulk of Rs. 128 billion (Rs. 128,480,998,000) will go for capital expenditure and around Rs. 30 billion (Rs. 30,995,000,000) for recurrent expenditure.

The Ministry of Urban Development and Housing will get around Rs. 23 billion (Rs. 530,341,000 for recurrent expenditure and Rs. 22,990,858,000 for capital expenditure.

The expense head of the Office of the President has been allocated close to Rs. 9.3 billion (Rs. 9,345,660,000) of which Rs. 3,206,180,000 will go for recurrent expenditure and Rs. 6,139,480,000 for capital expenditure.

The office of the Prime Minister will receive Rs. 1,051,750,000.

Party Leaders who met for a special meeting at the Parliament Complex last week had decided to take up the Appropriation Bill 2020 on Nov 12 and pass it the same day, Parliament sources said, adding that they also decided that the government would present budget 2021 on Nov 12.