Revised Budget proposals run Rs.7b

Thursday, 17 December 2015 00:33 - - {{hitsCtrl.values.hits}}

Opposition to be presented with updated Appropriation Bill on Saturday

By Ashwin Hemmathagama – Our Lobby Correspondent

The changes made to the Appropriation Bill 2016 during the Committee Stage Debate has increased Government expenditure by an estimated Rs.7 billion widening the Budget Deficit but Finance Minister Ravi Karunanayake was adamant that proposed development projects and subsidies would continue.

Minister Karunanayake responding to a supplementary question raised by UPFA Colombo District MP Bandula Gunawardana said: “Many suggestions were made during the Committee Stage Debate and what the Prime Minister presented were some of them.

The Budget we presented the Parliament is not something written on stone. Not only the Prime Minister but the President made changes on excise taxes, which will increase the Government revenue. The Prime Minister has made four proposals in his speech. We anticipate a change of Rs.7,000 million. A detailed report will be presented to the Parliament before concluding on 19 December.”

Seeking Parliamentary approval to allocate Rs.1.941 trillion to support State expenditure for the next year, the Government tabled an Appropriation Bill 2016, on 23 October estimated an increase of 7.12% in both recurrent and capital expenditure, compared with Rs.1.812 trillion allocated for 2015.

The Appropriation Bill 2016 was to allow the Government to borrow Rs.1.349 trillion to shoulder increased expenses and to control a widening Budget deficit of Rs.521 billion estimated in January 2015. With the expenses going up the Government will have to update the House with sources and plans of funding.

MP Gunawardena pointing out the Parliament control over state finances and the importance of having access to an updated version of the Appropriation Bill as soon as possible said: “The first part of this Budget was passed with a two thirds majority. Many changes were seen thereafter. Especially with the presentation the Prime Minister made in this house on Tuesday. So, both the income and the expenditure will change. The budget deficit will widen.”