Mini budget in November ahead of polls next year
View(s):The Treasury is preparing a mini budget (vote on account) in November replacing the normal 12-month budget in case a decision is made to hold presidential or parliamentary elections next year, informed sources said.
The sources said that the Treasury has been advised to prepare a mini budget but will revert to the normal calendar 2015 budget if the Government decides against holding polls in 2015. Presidential and Parliamentary polls are only due in 2016.
There has been widespread speculation that polls will be held next year. Cabinet media spokesman Minister Keheliya Rambukwella said this week that 2015 Presidential election was “possible,” in January 2015, but reliable sources revealed that it will be in March or April as suggested by presidential astrologers.
There have also been suggestions that Defence Secretary Gotabhaya Rajapaksa would be appointed a ruling party organiser, contest elections and be appointed a powerful minister.
The vote on account, if presented in November, will be to cover expenses for a few months. Its time period (number of months) of the vote of account will be decided after the announcement of the date of elections, a Government official said adding that in 2009 a similar vote of account was prepared for four months as the term of parliament ended in April 22, 2010. This was the normal routine followed by the Treasury before an election, he revealed. Treasury Secretary Dr. P.B. Jayasundera recently discussed the budget planning process with his senior officials.
The Treasury has been directed to explore the possibility of introducing a salary increase for public servants, grant permanency for casual workers, reduce electricity tariffs, increase fertilizer subsidies and provide fuel subsidy for fishermen through the mini budget to attract voters to the ruling party. While a ‘vote-on-account’ is normally a departure from the usual ‘election budgets’ presented before polls with unrealistic spending plans, in this case, the mini-budget is likely to resemble a short-term budget with runaway spending to woo voters, economic analysts said.
A vote on account in normal circumstances provides for spending of a sufficient amount of money for a stipulated time period for recurrent and capital expenditure and a further sum of money for ‘advance account’ activities.
Analysts said that Sri Lankans have a peculiar notion that the ‘government can bear the burden and give relief’ to the ‘masses’ not realizing that higher taxes, high inflation or borrowing which will be a burden on yet unborn children as a result of uncontrolled state spending.