Mini budget...

A senior Treasury official told the Business Times that the mini budget comes with many challenges as a result of the annulment of 2015 budget presented by President Mahinda Rajapaksa. “The 2015 budget presented and approved by parliament is not valid anymore as the minister in charge has resigned,” he said.

Vote on account (budgets) before an election has been the normal practice except in the case. In end 2009 a similar vote of account was presented in view of then Presidential poll.

Despite a request by Treasury officials to do the same this time, in fact in a request made in June 2014 as speculation was rife at the time of the impending poll, Jayasundera on the directions of the then President Rajapaksa prepared a full 2015 budget which was presented to Parliament on October 24 with election goodies and sops.

According to Finance Ministry sources, the new vote on account will be prepared by taking into account financial allocations made to ministries in the first four months of 2014.

37 ministries of the new government will be allocated necessary finances on the basis of previous allocations made to each ministry by the Treasury during the first four months of 2014, the senior official said.

Thereafter when presenting the 2015 budget for the full calendar year – that is after a new government is elected at the April parliamentary polls - the 2015 mini budget estimates will also be included, he disclosed.

He added that additional financial allocation will be made for the newly set-up Ministry of Food Security as well as for salary increase for public sector employees and tax reductions for 10 essential commodities, etc proposed in President Maithripala Sirisena’s manifesto.

At least Rs. 60 billion should be allocated to grant a salary increase of Rs.5000 for public sector employees. The salaries of public servants will be raised by Rs 10,000 a month. Immediate relief will be provided by a payment of Rs 5,000 in February. There were 27 proposals in the manifesto for which financial allocations will be made in the mini budget.

The removal of current excessive taxes on fuel, amounting to around Rs 40 billion a year to pass the benefit on to consumers, providing relief on the interest and penalties payable on pawned gold items up to a value of Rs 200,000 and a relief package for persons caught in a debt trap though falling prey to various promises made by finance companies, credit card scams and pyramid schemes are among these 27 proposals.

Despite a request by Treasury officials to do the same this time, in fact in a request made in June 2014 as speculation was rife at the time of the impending poll, Jayasundera on the directions of the then President Rajapaksa prepared a full 2015 budget which was presented to Parliament on October 24 with election goodies and sops. According to Finance Ministry sources, the new vote on account will be prepared by taking into account financial allocations made to ministries in the first four months of 2014.