SC rules on Fiscal Management (Responsibility) Act amendment

By Ashwin Hemmathagama

Our Lobby Correspondent

The Supreme Court in its determination held the petition challenging the proposed Bill which envisages to amend the Fiscal Management (Responsibility) Act No. 3 of 2003 is inconsistent with the Constitution.

Speaker Karu Jayasuriya reading the Supreme Court determination in the Parliament said: “I wish to announce to the House that I have received the determination of the Supreme Court in respect of the Bill Fiscal Management (Responsibility) (Amendment), which has been challenged in the Supreme Court in terms of Article 121(1) of the Constitution. The Supreme Court has determined that neither the Bill as whole nor any of its provisions is inconsistent with the Constitution. 

I order that the determination of the Supreme Court be printed in the Official Report of today’s proceedings.”

Joint Opposition MP Bandula Gunawardane who was the petitioner has sought a declaration that the Bill shall become law only through a two-thirds majority in Parliament and the approval of the people at a referendum.

The petitioner stated that Fiscal Management (Responsibility) Act No. 3 of 2003 was brought with several objectives including to ensure that the financial strategy of the Government is based on principles of responsible fiscal management and to facilitate public scrutiny of fiscal policy.

According to the petition, the MP has held that the economic and financial conditions that were prevailing when amending the relevant percentage of the sum of Guarantee in 2013, have now been deteriorated and/or are on declination. The petitioner said presently the prevailing economic/financial conditions of the country are not strong enough to bear to serve or honour a commitment equivalent to the value of the annual revenue of the country and/or 10% of GDP and therefore are not conducive to increase the said percentage.

Speaker on Auditor General’s Report 

The Auditor General’s report on the much debated bond issuance will be discussed on a separate platform. 

Speaker Karu Jayasuriya, the Auditor General, the Attorney General, and the newly appointed Governor of the Central Bank will be the four members of this new setting, which will not have any bearing on the ongoing investigations of the Committee on Public Enterprises (COPE).

Speaker Jayasuriya in response to a question raised by Chief Opposition Whip, JVP MP Anura Dissanayake in Parliament yesterday said: “I have received both reports – the detailed and the summary presented by the Auditor General. With COPE approval it should be possible to place a copy in the Parliament library for Members’ reference.” The Speaker also highlighted the importance of keeping the reports confidential until the investigations conclude.

The full report consisting of 1,251 pages was handed over to the Speaker on 29thJune followed by a summarised report given over to COPE.