Treasury keeps an eye on financial management in ministries

Treasury keeps an eye on financial management in ministries

25 July 2021 02:51 pm

The Finance Ministry will be implementing a new management procedure to streamline financial functions of 28 ministries and 40 state ministries giving priority to prudent expenditure control and minimising waste and eliminating corruption. 
According to the new management procedure measures will be taken to strictly monitor and supervise all financial transactions of ministries and state ministries by the Finance Ministry.

Finance Minister Basil Rajapaksa has issued a strict directive to control spending of all state institutions during the next six months cutting down unnecessary expenditure, the Finance Ministry announced.

New Finance Minister Basil Rajapaksa has ordered to appoint a separate Treasury official entrusted with the task of financial management and supervision with responsibility in accordance with the new arrangement.

This decision was taken at a meeting held with relevant ministers at Temple trees in Colombo this week.

All financial functions of ministries will come under the supervision and scrutiny of the Treasury to manage and control expenditure under a strict procedure and financial discipline, official sources said.

Minister Rajapaksa has made a special request from the ministers to work with these relevant officials in a cordial manner when they need to transact with the Treasury.

He emphasised that strengthening and increasing productivity of the public sector is essential for economic and social progress, the sources said.

The aim is to properly manage financial allocations made to these institutions minimising wasteful expenditure and enhancing the effectiveness of the governance system.

It will also prevent delays in the implementation of development projects and procurement processes as well as obtaining funding for such projects allocated from the budget.

In accordance with financial regulations, the Minister of Finance has delegated his authority to Secretaries to the Cabinet Ministries and the Secretaries to the State Ministries in order for them to function as Chief Accounting Officers.

Further, in terms of Financial Regulation 124(2) Secretaries and State Secretaries are accountable for the expenditure incurred against the budgetary provisions, approved for each Expenditure Head.

Accordingly, Secretaries to Cabinet Ministers and State Ministries are accountable for the implementation of the projects and programmes in these estimates and for the expenditure incurred using the budgetary provisions allocated by stipulated estimates.

Therefore secretaries will have to work in collaboration with newly appointed Treasury officials to carry out financial functions, a senior treasury official said.

He noted that this initiative will help reduce implementation gaps and make the public sector more efficient.