Thursday Nov 28, 2024
Thursday Nov 28, 2024
Tuesday, 17 November 2020 01:04 - - {{hitsCtrl.values.hits}}
By Chandani Kirinde
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Prime Minister and Minister of Finance Mahinda Rajapaksa
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Prime Minister and Minister of Finance Mahinda Rajapaksa will present the new Government’s first budget to Parliament at 1:40 p.m. today.
The private sector is hoping that the Budget 2021 will provide clear-cut policies as well as tax and other support for small and medium enterprises (SMEs), particularly those targeted at import substitution. Ahead of the Budget presentation, key Government officials had indicated the Budget would also be focused on boosting market confidence with pro-business policies to turnaround sluggish growth in the economy and help contain the impact of COVID-19.
At least some fiscal consolidation measures will also be needed to assist the Government to raise much-needed funding to bolster reserves and repay an estimated $4.5 billion debt in 2021.
The public will be hoping for more social welfare measures after a resurgent virus in recent weeks impacted livelihoods.
It will be a low-key Budget presentation with only members of the diplomatic corps invited to the public gallery, while the media gallery will remain closed for the third week in a row due to fears over the spread of COVID-19.
The post Budget tea party this year will also be limited to Members of Parliament (MPs) and the members of the diplomatic corps, a deviation of the usual practice where a large numbers of invitees including public officials and media personnel also attend the event.
It will be the country’s 75th budget to be presented to Parliament with the country’s first Budget presented in December 1947. The Appropriation Bill for 2020 was presented to Parliament on 20 October.
Government expenditure for the year 2021 has been estimated at Rs. 2,678 billion with the highest allocations for the Ministries of Defence, Highways and Provincial Councils according to the Appropriation Bill 2021.
Separate allocations have been made for State ministries in the Budget, with those related to the agriculture and rural development sectors getting the bulk of the allocations along with the highways and road development sector.
Of the total of approximately Rs. 2,678 billion (Rs. 2,678,040,000,000) estimated for the service of the period beginning on 1 January 2021 and ending on 31 December 2021, Rs. 1,714,301,178,000 is for recurrent expenditure, while Rs. 963,738,822,000 will be for capital expenditure.
The expenditure will be met from payments which are authorised to be made out of the Consolidated Fund or any other fund or moneys of, or at the disposal of the Government and from borrowing made in the financial year 2021.
The debate on the Bill will commence from 18 November (Wednesday) and will continue till 10 December. The vote on the Second Reading of the Bill is scheduled for 21 November and the final vote fixed for 10 December.
