Govt. proposes Rs. 1.4 t spend in Vote on Account for 2025

Friday, 6 December 2024 00:30 - - {{hitsCtrl.values.hits}}

The Government yesterday presented the Vote on Account for the first four months of 2025, allocating over Rs. 1.4 trillion to sustain State affairs, including recurrent and capital expenditure, public debt servicing and debt restructuring.

The proposal was submitted to Parliament by Labour Minister and Deputy Minister Prof. Anil Jayantha Fernando.

Outlining the financial requirements, Minister Fernando stated that Rs. 1,000 billion is earmarked for recurring expenses, Rs. 425 billion for capital expenditure and Rs. 1,175 billion for foreign debt restructuring and servicing.

The total estimated expenditure for the first four months is Rs. 2,600 billion with Government revenue projected at Rs. 1,600 billion. The basic borrowing limit has been set at Rs. 1,000 billion.

Prof. Fernando emphasised the Government’s commitment to completing the ongoing foreign debt restructuring process. “Based on agreements with bilateral creditors and sovereign bondholders, we aim to present new debt papers and finalise this process by 31 December,” he added.

To account for potential delays in the restructuring process, the Government has provisionally increased the borrowing limit to Rs. 4,000 billion. “While we remain optimistic about meeting 31 December deadline, the extended borrowing capacity provides a buffer for any technical delays of one to two weeks,” the Minister explained.

Following are the allocations made in the Government’s interim Vote on Account for 2025;

• Ministry of Transport, Highways, Ports, and Civil Aviation – Rs. 220.06 billion

• Ministry of Finance and Economic Development – Rs. 186.02 billion

• Ministry of Public Administration, Provincial and Local Councils – Rs. 170.47 billion

• Ministry of Health and Media – Rs. 161.99 billion

• Ministry of Defence – Rs. 142.95 billion

• Ministry of Education, Higher Education, and Vocational Education – Rs. 92 billion

• Ministry of Agriculture, Irrigation, Livestock, Agriculture, and Lands – Rs. 67.36 billion