Jun 07, 2022

Supplementary estimate of 695 bn. approved

Prime Minister Ranil Wickremesinghe today (07) presented a supplementary estimate of Rs. 695 billion for funds to ensure the unhindered functioning of state services which was approved by the Committee on Public Finance.

This Supplementary Estimate is presented to provide relief to various sections of society affected by the adverse economic conditions in 2022 and to provide additional funding to cover the rising cost of supplies due to inflation.

Accordingly, Rs. 395 billion from the Rs. 695 billion supplementary estimate would be used for recurrent expenditure and Rs. 300 billion is capital expenditure.

Secretary to the Ministry of Finance Mahinda Siriwardena explained to the committee the requirements to be met through the provisions of the supplementary estimate.

Accordingly, Rs. 87,000 million will be paid for the further payment of the monthly allowance of Rs. 5,000 to public servants from January 2022 and Rs. 40,000 million will be paid to the Samurdhi recipients from January 2022 for further payment of the monthly allowance of Rs. 5,000. A sum of Rs. 15,000 million has been set aside for the further payment of the additional allowance of Rs. 1000.

In addition, Rs. 50,000 million has been allocated to the Ceylon Electricity Board to pay to the Ceylon Petroleum Corporation to meet the energy requirement, Rs. 12,000 million has been allocated for evaluation incentives for the use of inputs in green agriculture and Rs. 50,000 million for the fertilizer subsidy through the supplementary estimate.

Rs. 25,000 million to cover possible arrears in food and other supplies to institutions such as hospitals and prisons, Rs. 4,500 million for other recurring expenses incurred due to the possible increase of prices and Rs. 21,500 billion for interest payments.

Further, Rs. 250,000 million has been earmarked for utilization / accounting of loans obtained under the Indian Loan Scheme for the importation of essential commodities for the benefit of the people affected by the economic crisis and the estimate also includes $ 140,000 million provided by the World Bank for relief for Samurdhi beneficiaries and the existing registered beneficiaries who are eligible for such benefits.

Although Rs. 695 billion has been estimated, it is expected to save more than Rs. 300 billion by minimizing all other expenses except essential expenses, the Secretary to the Ministry of Finance said.

Accordingly, the supplementary estimate and these terms are due to be approved in Parliament tomorrow (08).