Government to dispose unproductive non-financial assets
The cash-strapped Sri Lankan government is embarking on an ambitious plan of making maximum use of its non financial assets through the newly established Comptroller General’s office at the Finance Ministry, a senior Treasury official told the Business Times. This office was set up recently, with a view to monitoring the management of the assets and expenditure of the Government and its main function is to maintain a list of central assets prepared covering all non financial assets of the government.
Non-financial assets play a crucial role in economic developments as these assets are the most important determinants of net worth, or net wealth, of an economy, he said adding that making use of them provides the fundamentals for the future growth potential of an economy. The Comptroller General’s office is now making preliminary arrangements to create a central database to record all non-financial assets belonging to the government evaluating its correct value in state accounts.
It will adhere to a systematic process of developing, operating, maintaining, upgrading and disposing of assets in a cost effective manner and collect due revenue from non-financial assets of the government and assist expenditure management, he disclosed. Another objective of this initiative is to make maximum utilisation of state land for investment and development activities. The Comptroller General has been entrusted with the task of supervising the management of government non-financial assets by formulating regulations, collecting data and creating a centralised information system.
This office has issued a circular recently requesting all ministry secretaries, chief secretaries of provincial councils, heads of departments and public corporations and statutory boards to provide details of unutilised or idle buildings, incomplete constructions owned by state agencies. The aim is to make use of such assets for productive activities he pointed out noting that providing necessary guidance for the acquisition, maintenance and disposal of government assets was among the objectives of the setting up of the Comptroller General’s office. The deadline for the submission of these details ended on March 29.
The Finance Ministry will be introducing an unallocated asset account for unidentified assets, which will be periodically debited and credited to a non-financial asset account or by admitting the existence of negative net assets. The current administration has identified about Rs. 1.6 trillion in assets. According to the Auditor General’s report released recently, “even though the burden of debts of the country was rapidly on the increase, the non financial assets had not increased relatively.”
The process of non financial asset management has been launched to tackle this situation, he disclosed. The Finance Ministry has also issued instructions to ministries and state agencies to immediately dispose of 7,723 state-owned vehicles not in running condition. In an asset management circular, Treasury Secretary, Dr. R.H.S. Samaratunga has directed all ministry secretaries, chief secretaries of provincial councils, heads of departments, public corporations and statutory boards, chairmen of state banks and government owned companies to dispose all vehicles not in running condition before June 30.
All proceeds from the sale of these vehicles will be credited to the Consolidated Fund, he said, adding that updated information on this matter should be provided to the Comptroller General’s office on or before July 30.