Treasury imposes strict controls on using budgetary provisions

Given the difficult environment and ambitious budgetary targets, the government is taking measures to ensure the maximum use of financial allocations approved in the 2017 budget.

With the aim of maintaining strict monetary control in ministries and state institutions, the Treasury recently issued a ‘ state accounts’ circular directing all ministry secretaries, chief secretaries of provincial councils and heads of departments to stop making any financial commitments and liabilities more than the financial provisions approved from the budget.

According to the circular issued under the signature o f Deputy Treasury Secretary A. R. Desapriya, the financial commitments other than personnel emoluments have to be identified within the limits of the annual budget at the beginning of the year by the heads of state institutions.

When entering into financial commitment for the procurement of goods and services and contracts extending over one financial year or when goods and services have not been received and contract is not completed, such financial commitment can be carried forward to next year, the circular stipulated.

This could be done only if budgetary provisions have been made for such subsequent years.

All liabilities for the particular financial year should be settled within the year and no liabilities should be carried forward to the next year.

The Treasury will not undertake to settle any liability which does not conform with these instructions, the circular underlined. (Bandula)