Rs. 1.6 trillion Vote on Account coming soon
New Government's priority is to settle outstanding bills and kickstart economy
Prior to the November Budget, a Vote on Account to the tune of Rs. 1.6 trillion (Rs. 1,600 billion) is being given priority by the government to settle old bills and kickstart the economy.
To be presented in Parliament immediately after Cabinet approval is obtained, the urgent requirement is to pay outstanding bills for road and building constructions among other payments.
The expenses will cover an estimated Rs 200 billion needed to be paid for completion of construction projects. These payments have been delayed for more than one year. Some of the outstanding bills including those in the health sector will also be settled through the Vote on Account.
Among other outstanding bills are payments of more than Rs 15 billion for construction projects of schools.
Some of them have been abandoned due to the failure to complete payments.
Provisions will also be made to provide for the payment of foreign loans and some of the new projects including road development and power projects.
“The vote on Account may not be sufficient to pay all the bills. But it will be helpful to provide for bank loan schemes proposed by the government to ensure a cash flow among the people," newly appointed Samurdhi and Microfinance State Minister Shehan Semasinghe told the Sunday Times.
He said the Vote on Account would help to ensure that the Government was able to carry on without obstacles until the Budget was presented.
President Got a bay a Rajapaska earlier
presented two Votes on Account for this year’s expenses.
In February the Government abandoned a move to amend the Vote on Account to obtain an additional Rs. 367 billion for Government expenses and to increase the limit of borrowing, after the then opposition refused to support it.
The UNP opposed the move to increase the limit on borrowings to Rs. 1088 billion from Rs. 721 billion, saying this would put additional burden on the people and the economy.