Rs.4,376 bn as state expenditure

According to the Appropriation Bill presented to the Cabinet by Finance Minister Mangala Samaraweera, State expenditure for next year will be Rs.4,376 billion with a deficit of Rs.644 billion, which amounts to 4.1 per cent of the GDP, the Finance Ministry said yesterday.

It said in a statement that Government revenue for 2014 was 11.5% of the GDP and that the figure had gradually increased after the unity government came to power.

“The figure is expected to increase to 15.1% of the GDP in 2019. Rs.2, 057 billion has been allocated for debt servicing in 2019. This is the largest amount of money in the history of this country that a government has been compelled to bear in repaying its borrowings. Out of this amount, Rs.1, 271 should be paid locally next year while Rs.786 billion, which is equal to 4,650 million US dollars should be paid to foreign lenders. Accordingly, the Government expects to borrow Rs.1, 944 billion from local and foreign sources for its debt servicing including the financing of the budget deficit in 2019,” it said.

Among the government expenditures, Rs.1, 456 billion has been allocated for recurrent expenditure of the public sector while Rs.856 billion has been allocated for capital expenditure.

The Government is expected to spend Rs.1, 000 billion for the salaries of 1.1 million public servants and 600,000 pensioners and an additional Rs.220 billion has been allocated to provide public welfare such as Samurdhi allowance, school uniforms, free medicine , allowances for the elders, fertilizer subsidy, bag of nutritious food, payment for kidney patients and payments for the differently-able.

Rs. 63 billion has been allocated for a series of development projects aimed at rural livelihood development programmes such as one project for one village development programme, Grama Shakthi, Gamperaliya and Pibidena Polonnaruwa.

Rs.175 billion has been allocated to develop highways and complete the Southern Expressway development up to Mattala; develop and complete the Colombo Outer Circular Road from Kadawatha to Kerawalapitiya and, construct the stretch of Central Expressway from Kadawatha to Mirigama. This will also include the construction of the elevated Port Entry Road from Peliyagoda to the Colombo International Financial City.

Further Rs.75 billion has been allocated to complete middle and massive irrigation projects including the completion of the Uma Oya Multi-purpose Development Projects and Moragahakanda Development project.

At the same time, the Government has identified various housing schemes to be launched throughout the country in 2019. Accordingly, Rs.50 billion has been allocated for the relevant ministries which are responsible to launch these housing development projects.

Among them are urban housing development projects to be constructed by the Megapolis and Western Development Ministry, housing projects implemented by the Housing Development Ministry, housing development projects in the North and the East and the Estate housing development projects.