Appropriation Bill Tabled at the Parliament ! – Maximum Funds For The Defense Again!
Posted on 02.06.2019 by Chandana Sirimalwatte in Local News with 0 Comments
Financial Minister Mangala Samaraweer, on behalf of UNP Government moved the Appropriation Bill for 2019 budget yesterday(5) in Parliament, The bill sought the approval of the parliament to raise and spend Rs. 4.47 trillion during the year 2019.
The highest recurrent allocation of Rs. 393 billion is for the Ministry of Defence. The Highways and Road Development and Petroleum Resources Development Ministry has been allocated Rs. 176 billion, Health Ministry Rs. 187 billion, Agriculture Ministry Rs. 114 billion, Education Ministry Rs. 105 billion, Public Administration and Disaster Management Rs.263 billion, Provincial Councils and Local Government Ministry Rs. 292 billion, Megapolis and Western Development Ministry Rs. 50 billion and City Planning and Water Supply Rs. 127 billion.
The President’s Office has been given Rs. 14 billion, which is Rs. 3 billion higher than in 2018. The Prime Minister’s Office has remained the same, given an allocation of Rs. 2 billion, but the allocation for National Policies and Economic Affairs Ministry has been given a significant hike from Rs. 25 billion in 2018 to Rs. 98 billion in the latest Appropriation Bill. The Finance and Media Ministry was given Rs. 89 billion, which is a reduction from Rs. 95 billion from last year.
Accordingly, this year’s annual State expenditure will be Rs. 4.5 trillion and State revenue Rs. 2.4 trillion. State revenue which was 11.5% of GDP in 2014 has gradually increased after the Coalition Government came into power and is expected to be raised to 15.12% of GDP in 2019.
The National Budget for 2019 will be prepared under the Medium Term Fiscal Framework (MTFF) by adopting the performance-based budgeting approach with the aim of strengthening the ongoing fiscal consolidation programs, the statement added. The Government is also aiming to achieve the target of increasing State revenue to 17% and limiting recurrent expenditure to 15% of GDP by 2021.
The Appropriation Bill will be presented to Parliament by Finance Minister Mangala Samaraweera on 5 February and the Budget will be presented on 5 March. After the third reading the Budget vote will be taken on 4 April.
Finance Minister Samaraweera’s second Budget will have some ambitious targets including maintaining the debt to GDP ratio to just 70% and limiting recurrent expenditure to 15% of GDP. Capital expenditure will also be limited to only 3.5% of GDP.