Mangala further questions Presidential right to authorise public funds sans P’ment approval

President Gotabaya Rajapaksa  

Former Finance Minister Mangala Samaraweera

• Former Finance Minister challenges President, Govt. to explain constitutional authority to draw funds
• Blames Govt. for pushing country towards crisis by failing to present Budget on time
• Says Govt. has violated Vote on Account passed by last administration, term of which ended on 30 April
• Alleges Govt. exceeded borrowings limit of Rs. 721 billion by unlawfully obtaining loans beyond limit approved by Parliament

Former Finance Minister Mangala Samaraweera yesterday challenged the President and the Government to explain and prove the constitutional authority they possess to authorise and incur public expenditure from 30 April 2020 until the date on which a new Parliament is summoned to meet consequent to the Parliamentary General Election.

In a letter addressed to the Secretary to the President P.B. Jayasundara, Samaraweera also said that the reply sent to him in response to a letter he had sent the President on 28 April did not address the pertinent issues mentioned by him but instead refers to some other external matters of no consequence.

The bone of contention between the former UNP MP and the Government has been over questions he has raised about the legality of the President drawing funds from the Consolidated Fund for public expenditure without parliamentary approval.

“At present, Sri Lanka faces a crisis that exceeds the Constitution. Although the President issued an Extraordinary Gazette Notification declaring the dissolution of Parliament, it has not been possible to hold Parliamentary Elections on the date specified therein. Also, it is not possible to convene the new Parliament within three months of dissolution i.e., by 2 June 2020, as stated in the same Gazette Notification. 

In this context, as stated in your letter and as per the opinion of constitutional experts, the President shall be authorised to issue and spend money from the Consolidated Fund only for three months from the date on which the new Parliament is summoned to meet,” Samaraweera said.

He attributed to the current crisis to the failure of the Government to present a budget for 2020 after assuming office in November 2019.

“In my letter dated 28 April 2020, addressed to the President, I elaborated comprehensively and emphasised that there is no Appropriation Bill, or a Vote on Account duly passed by Parliament for public spending after 30 April 2020. Accordingly, the President may override fiscal powers of Parliament and authorise expenditure from the Consolidated Fund only for a period of three months after the convening of a new Parliament consequent to a General Election.”

Samaraweera said that under Article 150 (4) of the Constitution, the President is authorised to issue and spend from the Consolidated Fund for expenditure incurred in holding a General Election, but there is no other provision in the Constitution that allows the President to exercise his authority to withdraw and spend funds from the Consolidated Fund for public services.

“My letter to the President emphasised that only Parliament can lawfully authorise spending of public funds from 30 April, up to the date on which Parliament is summoned to meet again. Although the Election Commission has announced that the General Election will be held on 20 June 2020, the date on which the new Parliament shall be convened has not yet been declared officially. I state here that Parliament has full control over public finances in terms of Article 148 of the Constitution,” Samaraweera said.

He said that more than five months have passed since this minority Government was formed after the Presidential Election of 16 November, but so far it has failed to submit an Appropriation Bill or a Vote on Account.

In contrast, the United National Party (UNP), which came to power in January 2015 and was also a minority Government for nine months, mustered support from all in the governing and Opposition parties to submit a Budget for the year 2015 in January 2015 and gain majority vote for approval in Parliament.

“Parliament has not yet passed a legitimate Budget or Vote on Account to be effective from 30 April 2020. This Government has already violated the Vote on Account which was passed by the previous Government and its term ended on 30 April 2020. According to the VoA, the borrowings limit was Rs. 721 billion. However, this Government has unlawfully obtained loans exceeding the limit approved by Parliament. This has pushed the fiscal situation of the country into a crisis, and a future Government will have to consider the legality of such loans. Such irresponsible action will also have serious long-term negative repercussions on Sri Lanka, internationally.”

Samaraweera reiterated his call for Parliament to be immediately reconvened, with the support of all political parties represented in Parliament to approve all essential expenditures, including salaries for the public services for the period from 30 April up to the date on which a new Parliament is summoned to meet after the General Election.