State agencies to maintain strict financial discipline

Strict financial discipline is to be maintained in all state agencies during the first four months of 2020 at the beginning of the new decade as the public expenditure should be made in accordance with the Vote on Account, official sources said.

Reallocation of budgetary provisions approved by the Vote on Account 2020 to the new ministries for expenditure will be made until the Budget 2020 is presented, a budget circular issued by Treasury Secretary S. R. Attygalle divulged.

The Vote on Account, which was approved by Parliament on October 23, 2019, has been prepared based on the expenditure heads which prevailed in terms of the budget 2019.

The subjects and functions, which were allocated to 31 Cabinet Ministries and six Non Cabinet Ministries, are now assigned to 29 new ministries.

Rs. 757.6 billion has been set aside for the maintenance of public services in the first four months of 2020, and Rs. 711.8 billion has been allocated for expenditure already fixed by various acts while Rs. 5 billion is allocated for government advance accounts.

In addition to the Rs. 1,474 billion expenditure, the vote on account seeks permission to raise up to Rs.721 billion as loans.

The Ministry of Finance stated that Rs.1 billion has been allocated for the Election Commission.

Vote on Account permits only the expenditure related to continuation of the programmes, projects and subjects which are included in the budget estimates for 2019.

Therefore, during the period when the Vote on Account is in operation, no commitment shall be made towards new recruitments, new supplies and services and new functions and projects, the Ministry circular revealed.

On account of legal requirement, during the period of Vote on Account 2020, no provision is available in the "Supplementary Support Services and Contingent Liabilities" project of the Department of National Budget.

Therefore, the Treasury emphasised that spending agencies have to take necessary measures to address any essential expenditure for which no allocation is provided by managing within the provisions already made available.

Public institutions have been directed to desist from conducting training programmes, conferences, workshops and ceremonies at expensive hotels incurring huge costs.

Such practices are particularly observed in relation to foreign funded projects.

Since the financing agencies provide loans solely for the purposes of contributing to the development of the country, it is mandatory to ensure maximum contribution to the economy by minimising unnecessary expenditure, the circular pointed out.

Therefore the Treasury Secretary has directed these public institutions to use facilities available at Sri Lanka Foundation Institute, Sri Lanka Institute of Dev e l o p m e n t A d m i n i s t r at i o n , Yo d h awewa Leadership Training Centre, and Peradeniya Agriculture Training Institute at every possible instance.