The Government will present an amendment to the Vote on Account 2020 to Parliament next week, seeking Parliamentary approval to increase the debt ceiling from Rs. 721 billion to Rs. 1,078 billion.
It will make additional budgetary provisions of Rs. 367 billion, required to settle bills of completed projects implemented by various Ministries under the previous Government, which remain unsettled so far.
The money will also provide to cover the expenditures of development projects implemented utilising funds obtained through foreign sources that are not included within the limits of annual borrowings, Cabinet Spokesman Minister Bandula Gunawardana said.
There is no possibility in presenting a budget for 2020 in parliament until April or May this year as the general election is to be held to elect a new government.
The Treasury will have to manage public affairs in accordance with financial provisions in the vote of account passed in parliament in October last year.
Therefore Treasury is now compelled to manage daily cash flow in a prudent manner as the country is heading for general elections in the coming months.
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. 1474 billion expenditure, the vote on account seeks permission to obtain up to Rs. 721 billion as loans.
Cash inflow to the Treasury by way of revenue and other receipts is estimated at to Rs. 696.8 billion, official provisional estimates revealed.
Under these circumstances the Cabinet of Ministers has approved a proposal recently to present an amendment to Vote on Account (VoA) in Parliament to settle arrears and to finalise the accounts for ‘additional expenses by the previous government.
A sum of Rs.367 billion has to pay for several projects implemented by the previous regime ad his was not included in the VoA official sources revealed.
An additional allocation of Rs.156 billion is needed to settle arrears to various contractors and suppliers, including Rs.101 billion for unsettled recurrent expenditure and Rs.55 billion for unsettled capital expenditure.
A sum of Rs.211 billion is to be allocated for the implementation of projects with foreign loans.