Mihinair gobbles up Rs. 500 Million supplementary estimates

Five hundred million from the massive Rs 61, 800 million supplementary estimates that the Government presented to Parliament last Wednesday will go towards expenses incurred for the establishment of the Government-owned low-cost airline, Mihinair. The government is seeking the supplementary estimate as additional provision for programmes in respect of “urgent and unforeseen liabilities” approved by the Cabinet but not included in the 2007 Budget estimates.

Of this amount Rs. 4,200 million will also go towards reimbursement of Customs duty to Customs for vehicles imported for the members of the 13th Parliament as well as items cleared on the basis of reimbursement of Customs duty inclusive of confiscated vehicles which were later released to Government institutions. As much as Rs 18,500 million will go towards the payment of increased salaries and wages of public sector employees due to ratification of salary anomalies, payment of allowances for unutilized leave, cost of living allowance and new recruitments etc. in the defence, health, education and justice sectors.

Of the above amount, the defence sector requires the biggest chunk with Rs12,000 million being needed for recurrent expenditure of the Ministry of Defence, Public Security, Law and Order for leave encashment, CoL allowance, ratifying salary anomalies and allowances as well as additional provision required for new recruitments.

Rs16, 300 million is required for payment of retirement benefits, fertilizer subsidies, printing of school text books, medical supplies, kerosene subsidy for samurdhi beneficiaries and the fishing community as well as for programmes for strengthening civil security and restoration of community life in the liberated areas.

Rs.100 million will go towards additional cost to be incurred due to revised pensions of retired MPs according to the recent salary scales as approved by Cabinet on October 3rd on a memorandum by the Prime Minister. Parliament will meet on November 5, two days prior to the presentation of the Government’s Budget for 2008, to approve this supplementary estimate.