The Vote on Account, authorized under Article 150(2) of the Constitution and Section 23(1) of the Public Financial Management Act (No. 44 of 2024), provides temporary fiscal measures to ensure uninterrupted government operations. Covering the period from January 1, 2025, to April 30, 2025, or until the Appropriation Act for 2025 is enacted, it prevents disruptions to public services and governance processes during the transition.
Allocated Financial Provisions
The financial allocations under the Vote on Account are divided into three schedules:
- The First Schedule provides Rs. 1,402,886,263,000 for recurrent and capital expenditures, ensuring the continuation of essential services, including healthcare, education, defense, and public administration.
- The Second Schedule allocates Rs. 4,197,113,737,000 for charged expenditures, such as employee salaries, pensions, debt servicing, and other statutory financial obligations.
- The Third Schedule assigns Rs. 5,000,000,000 for advance payments to address specified services, ensuring operational flexibility.
Additionally, Rs. 4,000,000,000,000 is authorized for domestic and international borrowing. These funds will support infrastructure projects, fiscal adjustments, and unforeseen expenditures, ensuring financial resilience. Loan utilization is subject to reporting requirements as outlined in Sections 50(2)(d) and 51(2)(d) of the Public Financial Management Act.
Fund Transfers and Management
The Vote on Account provides flexibility for reallocating funds within the Development Activities program of the Department of National Budget. Approved transfers are classified as supplementary allocations and must comply with guidelines detailed in the Fourth Schedule. The Secretary to the Treasury or authorized deputies oversee these reassignments, and detailed reports on fund transfers must be submitted to Parliament within two months of execution. This ensures strict compliance with fiscal guidelines and promotes accountability.
Transparency and Reporting
To uphold transparency, the Vote on Account mandates that all expenditures, including fund reallocations, be documented and reported to Parliament. Detailed financial reports ensure that spending aligns with constitutional and legal standards. These measures reinforce public trust in the government’s fiscal management while maintaining accountability.
Legislative Framework
The Vote on Account operates within a robust legal framework. Article 150(2) of the Constitution authorizes temporary financial measures when a formal budget is not in effect, while Section 23(1) of the Public Financial Management Act provides statutory authority for interim allocations to sustain government operations.
Strategic Importance
The Vote on Account is critical for maintaining governance continuity. It ensures uninterrupted delivery of essential public services, such as healthcare, education, and defense, while enabling timely debt servicing and statutory financial commitments. The framework also offers flexibility to address emergencies and sustain investment in national development projects, balancing short-term needs with long-term economic stability.
Summary of Key Figures
|
Category |
Amount (Rs.) |
Purpose |
|
First Schedule |
1,402,886,263,000 |
Recurrent and capital expenditures |
|
Second Schedule |
4,197,113,737,000 |
Charged expenditures |
|
Third Schedule |
5,000,000,000 |
Advance payments |
|
Loan Provisions |
4,000,000,000,000 |
Domestic and international borrowing |
Conclusion
The Vote on Account is a vital tool for ensuring governance continuity and financial stability during Sri Lanka’s fiscal transition. By addressing immediate operational needs, enabling flexibility for unforeseen challenges, and emphasizing transparency, it ensures the smooth functioning of public services. This temporary measure also supports long-term development goals, reinforcing the government’s commitment to accountability and fiscal prudence.
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