Government plans to introduce a mini budget in May

In a desperate move towards surviving the current fiscal crisis, the beleaguered government is planning to introduce a 4-month mini budget or vote on account running from June to August, reliable official sources revealed adding that the presentation in parliament would happen this month.

Finance Minister Ali Sabri is holding discussions with the Central Bank Governor, Treasury Secretary and senior officials of the Finance Ministry on the possibility of presenting a mini budget or vote on account under the present economic crisis.

The present government famous for introducing mini- budgets is compelled to repeat its practice of presenting three vote on accounts in 2020 due to the difficulty in implementing the budget 2022 further under present socio-political and economic instability, a top government official said.

However there was no way of introducing new taxation system or tax reforms via Vote on Account as it should confined to allocations for  expenditure only, he said adding that the Finance Minister can propose tax increases with the consent of the president subject to cabinet and parliamentary approvals.

It had presented a three month mini-budget of Rs. 1224 billion running from March to May 2020, using constitutional powers given to President Gotabaya Rajapaksa after parliament was dissolved as the country had been gripped by the coronavirus.

Sri Lanka began 2020 with a 4-month mini-budget or vote-on-account running up to April passed by the last parliament.

Another mini-budget of Rs.1043 billion from June to August 2020 was passed in parliament, citing authority given to the President under the Constitution to spend money in the absence of appropriations approved by parliament.

It has also submitted a vote-on-account or mini budget to parliament seeking approval to spend Rs.949.76 billion for the four months from August to December 2020 which was subsequently passed in parliament. (Bandulaq)