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Interim budget gazetted, awaits greenlight from Parliament

17 Jul 2022

  • Dept. of National Budget completes preparations
  • Govt. expenditure at Rs. 3.3 t; Rs. 1 t capital expenditure
  • Samurdhi allowance increased to Rs. 83 b
  • In event of all-party-govt., new cabinet should approve Bill
By Shenal Fernando The preparation of the Appropriation (Amendment) Bill proposed by Acting President Ranil Wickremesinghe, in his capacity as Minister of Finance, Economic Stabilisation, and National Policies, has been completed and published in the gazette and the only step left is for the interim budget to be presented and passed in Parliament, Treasury sources revealed to The Sunday Morning Business. Sources disclosed: “All necessary preparations related to the interim budget have been completed by the Department of National Budget and the Appropriation (Amendment) Bill to amend the Appropriation Act No. 30 of 2021 has been published in the gazette on 7 July 2022. Therefore, it is up to the Government to present it to Parliament and to pass it.” Speaking in Parliament on 7 June in his capacity as Finance Minister, Wickremesinghe stated that the interim budget would cut capital spending and direct money for essential public services and relief for the poorer sections of society. He added that the interim budget would act as the “foundation” for the economy, allowing it to “stabilise and recover”. “The interim budget will reduce unnecessary Government spending, while controlling other costs. We will also focus on revitalising many areas affected by the crisis. There is an urgent need to focus on many sectors such as the export economy, tourism, and construction.” However, contrary to these claims, as per the Appropriation (Amendment) Bill published in the gazette, the estimated Government expenditure has increased from Rs. 2.8 trillion to Rs. 3.3 trillion, with capital expenditure increasing from Rs. 955.6 billion to Rs. 1,088.6 billion and recurrent expenditure increasing from Rs. 1,840.5 billion to Rs. 2,187.3 billion. However, keeping with Wickremesinghe’s promise of increasing Samurdhi relief in the interim budget, the budgetary allowance to the Department of Samurdhi Development has been increased from Rs. 67 billion to around Rs. 83 billion. Speaking to The Sunday Morning Business, Minister of Justice Dr. Wijeyadasa Rajapakshe revealed that in the event a new all-party government was formed, the new cabinet would have to approve the Appropriation (Amendment) Bill and if they wished to make any alterations, the amended bill would have to be published in the gazette again. Thereafter the Appropriation (Amendment) Bill will have to be presented to Parliament to be debated and passed. The interim budget for 2022 is expected to include six key areas – a food security plan; an increase of the annual expenditure on the economically backward to $ 550 million from $ 350 million; a 100% write-off of the loans of farmers with less than two hectares of land; a programme to grant free ownership of State land to their residents; a programme to grant the ownership of urban flats to the occupants on a concessional basis; and a programme to grant 1,888 flats, donated by China, to the public for free.  


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