Budget 2021 to provide immediate benefits to public

Friday, 18 September 2020 00:25 - - {{hitsCtrl.values.hits}}

Cabinet approval to draft Appropriation Bill for 2021
Bill before Parliament in mid-October
PM presents to Cabinet policy framework to be followed in preparation of Budget
Employment for low income families, rural upliftment, housing, educational reforms among key areas

The Appropriation Bill for the year 2021 is scheduled to be tabled in Parliament during the second week of October, Cabinet was informed this week.

Prime Minister Mahinda Rajapaksa, who is also the Minister of Finance, presented the policy framework to be followed in preparation of the Budget for the year 2021, prioritising several key areas for which resources will be allocated in keeping with the Government’s policy declaration, ‘Vistas of Prosperity and Splendour’.

In this context, in preparing 2021 Budget estimates prioritising capital expenditure, improving efficiency and potential of Government revenue collection, rationalising recurrent expenditure and maintaining a proper financial management and discipline should be strictly focused to reach the relevant economic targets, the Budget preparation guidelines state.

All secretaries to ministries and state ministries, chief secretaries of provincial councils, heads of departments, chairmen of corporations and statutory boards have been told to strictly comply with the priorities the Government has clearly specified in the Extraordinary Gazette No.2187/27 dated 09.08.2020, and in order to achieve these national priorities promptly; to review their activities in line with the subjects assigned in preparing the Budget for the year 2021.

Priority will be given to projects which provide immediate relief to the public such as empowerment of low income families, upliftment of the rural economy, fulfilling the housing needs of the public, educational reforms and achieving transformational progress in the skills development sector. Furthermore, the development of infrastructure facilities, promotion of small and medium scale domestic producers and expansion of their products, and upgrading rural road networks are also among the priorities listed.

Major priority areas will include the allocation of resources required for the state investment program creating favourable grounds for successful operation of business activities; following the cost management methodologies under the prevailing circumstances since the estimation reveals that the State revenue for the year 2021 would be approximately 10.2 % of the gross domestic production.

The other areas include providing drinking water to all, implementation of the program for renovation and improving of 100,000 kilometres of roads, giving priority to the aquatic resources and irrigation sector, and providing assistance required for the digitalisation activities of the Government.

Cabinet approved the proposal submitted by the Prime Minister to draft the Appropriation Bill of the year 2021 based on these policies.