BUDGET REDRAFTED

Published : 8:50 am  October 5, 2016 | No comments so far |  |  (246) reads | 

Untitled-1BY KELUM BANDARA The Government had redrafted the Appropriation Bill for 2017 targeting the reduction of the budget deficit to 4.5 percent from the Gross Domestic Production (GDP) in conformity with a condition laid down by the International Monetary Fund (IMF), it is learnt.

In the bill presented for Cabinet approval earlier, the Government had been unable to adjust the budget deficit to the expected level. The new draft was presented to the Cabinet for approval yesterday. According to Cabinet sources, it was approved to be announced in the Gazette notification. Afterwards, it will be presented to Parliament on October 19. The Government outlines its allocations for each Ministry and the borrowing limit in the Appropriation Bill presented for each year ahead of the budget debate. Finance Minister Ravi Karunanayake is planning to make his maiden budget speech on November 10. However, it is uncertain whether he will be able to do it on the scheduled day. Once presented in Parliament, one week’s time is given for interested parties to challenge the Constitutionality of the Appropriation Bill. Then, the court can take up to three weeks for its determination. Depending on the Supreme Court’s determination, the Government has to move on the Appropriation Bill.