Do not ask for more than 2021 budgetary allowance, Treasury tells State institution heads

• Treasury Secretary S.R. Atygalle directs State institutions to manage 2021 Budget allocations in well-prioritised manner
• Says via new circular uncertainty over COVID-19 and disaster management expenses will make additional allocations very difficult
• No new commitments to be made until 2020 bills are settled and necessary budgetary provisions are at hand
• Says Treasury not responsible for liabilities if commitments made without necessary provisions

By Chandani Kirinde

Treasury Secretary S. R. Attygalle

The Finance Ministry has informed heads of all State institutions to ensure that they manage their expenditure for 2021 within the budgetary allocations as it would be exceedingly difficult to allocate additional funds given the uncertainties due to the COVID-19 pandemic.

State institutions hence have been instructed to ensure that budgetary provisions for 2021 are managed in a well-prioritised manner.

The Ministry also said that prior to taking on new commitments in 2021, payments should be settled for unpaid bills of 2020 and to ensure budgetary provisions are at hand before making any new commitments.

“Relevant officials are personally responsible for the commitments made while budgetary provisions are not available as the Treasury is not responsible for such liabilities,” Treasury Secretary S.R. Atygalle said in a circular.

It added that requests for additional allocations can only be made for an essential matter and such requests should be forwarded to the Treasury together with the recommendation of the Chief Accounting Officer while requests from State Ministries should come from the Secretary of the Cabinet Ministry.

The Circular also said that when making the annual and procurement action plan for 2021, the activities should be organised in such a manner that the purchases and payments can be made from the first quarter of the year as plans for which payments are made in the last quarter of the year leads to liquidity difficulties and ends with a significant amount of unpaid bills being shifted to the following year.

“As the Parliamentary Committee on Public Finance has also emphasised on this unfavourable situation, plans should be made to settle the expenses under each vote from the month of January itself,” it said.

 The relevant circular has been sent to all secretaries of ministries and State ministries, chief secretaries of provincial councils, heads of departments, district secretaries and chairperson of corporations and statutory boards.