Independent budget office for cost analysis

President’s bill seeks to assist Parliament in public finance responsibilities; wide powers to new body

Anew two-member independent “Parliamentary Budget Office” is to be set up with extensive powers, including the power to call for information from any state institutions or employees, and raise its own fund, along with full immunity from prosecution.

The bill to this effect has been submitted by President Ranil Wickremesinghe in his capacity as the Minister of Finance, Economic Stabilisation and National Policies. It seeks to set up a dedicated office to assist Parliament in the performance of its public finance responsibilities with independent analysis of budget and the medium-term economic and fiscal outlook studies.

The office will maintain its own fund and be vested with powers to receive “funds by way of donations, gifts, grants and from any source whatsoever.” In addition, the office and its staff will be given full immunity from prosecution and “shall not be liable for any act done or purported to be done, or any omission made in good faith” during the exercise of its duties.

Two officials -- the Parliamentary Budget Officer and the Deputy Parliamentary Budget Officer -will be appointed by the President based on the recommendation of the Constitutional Council (CC). This will be followed by a public notice issued by the Secretary General of Parliament. They are vested with adequate powers to run the office as a separate entity within Parliament.

The office will maintain its own fund and be vested with powers to receive "funds by way of donations, gifts, grants and from any source whatsoever"

In addition, recognised political parties and Members of Parliament (MP) can obtain its services on the cost implications from a financial, revenue and expenditure perspective of policy proposals before submitting them to Parliament.

In addition to being competent, honest with high moral integrity and of good repute, potential applicants require at least 15 years of experience in government budgeting, financial policy, fiscal policy and macroeconomic analysis. The term of the two officers is five years and can be extended for one more term.

An Advisory Committee consisting of Chairpersons of the Committee on Public Finance, the Committee of Ways and Means and the Deputy Speaker will assist the Secretary-General in the selection process of the two officers.

The office is vested with powers to recruit staff, discipline its officers and determine salaries in addition to being able to obtain services or enter into an agreement with any person who has knowledge and experience in government budgeting, financial policy, and macroeconomic analysis to perform its responsibilities.

According to the bill, the office has the power to request access to and make arrangements for the “timely examination and digital transfer in a written or electronic record, data, analysis, modelling or other information possession by a public institution.”

The office is also mandated to perform analytical functions and request from Committees, Members of Parliament or recognised political parties cost analysis on policy proposals, analyses of long-term fiscal sustainability, debt sustainability and tracking of budgeting measures against strategic goals.

Under the proposed bill, a recognised political party leader or an independent group leader can request the office to prepare a policy costing of a proposal in their manifestos prior to the dissolution of Parliament.