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Thursday, 22 May 2014 02:05 - - {{hitsCtrl.values.hits}}
Ministry of Agriculture to provide the fertiliser subsidy.
“There is no allocation of Rs. 50 billion in the Budget, nor have you raised it through a supplementary budget. Where have you received this money? Parliamentary approval is required for Government spending,” said Karunanayake, referring to Clause 148 of the Finance Act.
In response, Minister of Agriculture Mahinda Yapa Abeywardena, who stated that getting the required money was a result of the “competence” of the ruling party, revealed the continuous borrowings from People’s Bank to shoulder the fertiliser subsidy. “The Government has borrowed from the banking sector for the past eight seasons to provide the fertiliser subsidy. Is it a problem that we continue to provide the subsidy to farmers? In case the UNP comes to power, will it continue to provide it at Rs. 350? We will continue to give the subsidy as long as we are in power,” confirmed Minister Abeywardena, who endorsed the “wilful violation of the Finance Act” as “a matter with little importance” in response to a supplementary question raised by Karunanayake.
However, Karunanayake also pointed out that such borrowing from the banking system clearly violates the single borrower limit of 10% set by the regulator, leading the entire banking system to collapse. According to Karunanayake, the Ministry owes Rs. 8 billion to A. Baur & Company and Rs. 10 billion to CIC Agri Business in addition to two other companies.
Pertaining to the Government-held Ceylon Fertiliser Company Ltd. a profit of Rs. 199 million was reported during the 2012-2013 period, according to the Minister, “but negligible in terms of the large volume the company produces”.
Responding to a question for oral answer, the Minister also stated that the company projects Rs. 331.6 million profit for the 2015-16 period. (AH)
