The Appropriation Bill presented to Parliament by Finance Minister Ravi Karunanayake on Thursday (October 20) stated that the total Government’s expenditure for next year is over Rs 1,819 billion (Rs 1,819,544,000,000).
However, the amount shows a decrease in the government expenditure when compared to expenditure this year which is Rs. 1,941 billion. The Government’s limit on borrowings for 2017 has been set at Rs. 489 billion (Rs. 1,489,205,436,000).
The Appropriation Bill is for the second Budget of the National Unity Government led by President Maithripala Sirisena and Prime Minister Ranil Wickremesinghe. The Unity Government after assuming office in January 9 last year presented a mini-budget on January 29.
According to the Appropriation Bill, the estimated expenditure of the President’s Office has been increased by three fold. The allocation to the President’s Office which was Rs 2.3 billion in 2016 has been increased to nearly Rs. 6.4 billion (Rs.6,452,679,000) in the next financial year which shows a three-fold increase. Of this amount, around Rs. 1.9 billion has been allocated for the Recurrent Expenditure while the balance will go for the Operational and Development activities under the President’s Office.
The expenditure of the Prime Minister for the next financial year has been estimated at Rs. 1,255,271,000. This is an increase of Rs.769,071,000 when compared to the funds allocated for the current year. In addition, the National Policies and Economic Affairs Ministry which comes under the purview of the Prime Minister has been allocated Rs.12,543,197,000 for next year. The funds allocated to the same Ministry this year was Rs.12,192,350,000.
As usual, the lion’s share is for the Defence Ministry which is around Rs. 284 billion (Rs.284,044,344,000). Of this Rs. 251 billion will be Recurrent Expenditure and around Rs. 32.2 billion Capital Expenditure. However, the defence allocation for the next year has been pruned down when compared to this year’s allocation. In 2016, Defence allocation stood at more than Rs. 306 billion, of which more than Rs. 257.6 billion were Recurrent Expenditure while Capital Expenditure was around Rs. 48.9 billion.
Allocation for the Education Ministry which saw a four-fold increase in the previous year’s Appropriation Bill with Rs 185.9 billion has been drastically reduced in the Appropriation Bill for next year. The allocation made for the Education Ministry for next year is Rs 76.9 billion (Rs.76,943,719,000). Higher Education and Highways Ministry has been allocated Rs. 163.4 billion (Rs.163,404,738,000). In 2016, the Ministry had been allocated Rs. 171.4 billion.
Allocation for the Ministry of Health, Nutrition and Indigenous Medicine stands around Rs. 160.9 billion (Rs.160,971,829,000). This is about Rs. 14 billion decrease when compared to Rs. 174,077,998,000 allocated to the Ministry in 2016.
The Ministry of Mahaweli Development and Environment which also comes under the purview of the President has been allocated a sum of Rs 57.6 billion (Rs.57,623,465,000). The Appropriation Bill for the year 2016 has allocated Rs. 69,495,807,000 for the Ministry.
The other big allocations are for the Ministries of Finance (Rs. 242,806,451,000), Provincial Councils and Local Government (Rs.214,223,449,000) and Public Administration and Management (Rs.165,204,474,000).
Meanwhile, the least allocation has been made to Special Assignment Ministry which is Rs. 118,254,000. Regional Development Ministry has been allocated only Rs. 621,641,000 while Megapolis and Western Development Ministry has been given Rs. 15,805,629,000.
Finance Minister Ravi Karunanayake told the media that a cooperated budget prepared for 2017 after considering the views and proposals of both UNP and the SLFP in the National Unity Government will be presented to the Parliament on November 10. The main thrust of the budget 2017 is to reduce the budget deficit to 5.5 percent of GNP, maintain the state investment level between 6 – 8 per cent of the GDP, investment level of the economy at 30 per cent of the GDP and achieve an economic growth beyond 6.5 percent. The debate on the second reading of the Budget will commence following Finance Minister’s speech and will continue for 14 days at which time the Second Reading Division will be taken. The Committee Stage debate will continue for 12 allotted days before the third and final reading division is taken.