Parliament control over 210 state funds, 13 shut down
Some 210 statutory and non-statutory funds being operated by various government institutions will be brought under the control of Parliament while shutting down a further 13 public funds, the Finance Ministry revealed.
A new system has been introduced to make changes on the scope, mandate and objectives of such funds to reflect the present day requirements under the direct and strict monitoring of the Treasury, a senior official on condition of anonymity told the Business Times.
All these funds will be made more efficient and transparent service providers, he said adding that it will raise the quality of the government’s fiscal policies.
A special committee appointed to look into the fund management has come to a conclusion that out of the total 210 funds reviewed, 105 funds have been identified as public funds, of which 10 funds have been identified as the highly impacted funds. Hence it requires further study to take policy decisions.
The committee has made recommendations which were subsequently approved by the Cabinet of Ministers.
Based on the recommendations of the committee, 12 public funds have already been placed under the national budget.
The Treasury is now holding discussions with individual ministries on how to implement the various public funds managed under those ministries, the official said.
The committee has recommended the continuation of 21 funds with the utilisation of income earned by funds and close funds which have been identified as not feasible to operate.
It has also suggested making all other funds under the financial control of Parliament as per the Article 148 and 149 of the Constitution.
The government, considering the importance of direct and close monitoring of government public funds by the Treasury, has reviewed the fund management and many irregularities such as corruption, financial misappropriation and wastage of money have been detected.
In a startling revelation the All-Island Federation of Farmers (AIFF) National Organiser Namal Karunaratne has called upon the government to investigate the misappropriation of the Crop and Loan Protection Fund meant to pay farmers for crop damage.
He added that this fund which had not been used for years, had Rs. 60 million, but only Rs. 15 million remained now.
He said the fund functioning under the Prime Minister was created consequent to a series of farmer protests requesting a fund to insure crops.
The 13 funds listed to be closed are the National Botanical Garden Trust Fund, Judicial Infrastructure Maintenance Trust Fund, Road Maintenance Trust Fund, National Child Development Fund, Wild Life Trust Fund, Vehicle Emission Trust Fund, “Sisu Aruna” Scholarships Fund, “Mahindodaya” Scholarship Fund, “Sujatha Diyaani” Fund, Shipping Development Fund, Temporary Surplus Trust Fund, Self Employment Revolving Fund, and Dedicated Economic Centres Maintenance Fund.