Transcript SHIPDET Special Topic Course on Result Based Planning

26th -30th March 2012 in China
Country Presentation By
Ms. J.C. Weligamage & Mr. M.A.S.H. Perera From
Sri Lanka
Constitutional Provisions on
Public Finance
 Parliament shall have full control over public
finance. No tax, rate or any other levy shall be
imposed by any local authority or any other public
authority, except by or under the authority of a law
passed by Parliament or of any existing law.
(Article 148 - The Constitution of the Democratic Socialist Republic of Sri Lanka)
Process of Public Finance
Parliament
Cabinet of
Ministers
Ministries/
Departments
(Rev. & Exp)
General Treasury
Auditor
General
Ministries/
Departments
(Rev. & Exp.)
Budgetary Process
 The General Treasury annually issues instructions by way of a
Budget Circular (“Budget Call”) to prepare expenditure
estimates.
 All
Ministries and Departments prepare the Draft
Estimates together with the extracts and the relevant forms
should be forwarded to the General Treasury not later than the
date prescribed in the Budget Call.
 The General Treasury after considering the draft estimates in
consultation with the respective Ministries and Departments
incorporate decisions in the draft estimates.
Budgetary Process – Cont..
 Once the draft estimates are finalized, the General Treasury
submit draft estimates to Cabinet for approval. After obtaining
Cabinet approval for the finalized draft estimates, it will be
embodied in the Appropriation Bill.
 Every urgent and essential proposals, or changes to the draft
estimates will be included by considering the views at the
Committee stage in the Parliament.
 The Appropriation Bill passed by the parliament shall become
law (Appropriation Act) and no expenditure should therefore
be incurred before a warrant is issued, under the hand of the
Minister in charge of the subject of Finance.
Summary of Government
Fiscal Operation
Description
2009
(Rs. Bn.)
2009
(% of GDP)
2010
(Rs. Bn.)
2010
(% of GDP)
Revenue & Grants
725.6
15.0
834.0
14.9
Tax Revenue
618.9
12.8
724.7
12.9
Non Tax Revenue
106.6
2.2
109.4
2.0
1201.9
24.9
1280.2
22.8
Recurrent
879.6
18.2
937.1
16.7
Capital & Net Lending
322.4
6.8
343.1
6.4
Revenue Surplus(+) Deficit(-)
-179.9
-3.7
-119.8
-2.1
Budget Surplus(+) Deficit(-)
-476.4
-9.9
-446.0
-8.0
83.9
1.7
194.9
3.5
392.5
8.1
251.1
4.5
Expenditure
Foreign Financing
Domestic Financing
Source: Annual Report 2010 Ministry of Finance and Planning
Challenges of Budget Execution
and Monitoring
 Lack of financial resources and modern technology
 Difficulties in land acquisitions for development activities
and environmental issues
 Instability of price levels, foreign exchange rates and
interest rates
 High level of government debt
 Changing government policies and budget techniques
Challenges of Budget Execution
and Monitoring - Cont..
 Large sum of money allocated for the,
 Welfare programs like government pension schemes
 Various types welfare subsidies for poverty reduction
 Resettlement of
internally displaced people in north and
east provinces
 Free education and health
 Difficulty in determination of development priorities
 Regional disparities
Challenges of Budget Execution
and Monitoring - Cont..
 Administrative drawbacks,
 Submission of incomplete, incorrect data and information
from the regional level for preparing the sectoral master
plans
 Submission of proposals for draft estimates without
considering nationally accepted priorities
 Poor coordination among line ministries at project planning,
budgeting, implementing and monitoring stages
 Lack of skilled technical staff at regional level to follow up
project implementation
 Lack of information to measure performance
Challenges of Budget Execution
and Monitoring - Cont..
 Financial progress of the projects are highly anticipated than
performances
 Some outcome of the projects or programmes cannot be
measurable
 Budget preparation, monitoring and evaluation are done by
various entities
 Feedback of project performance is not reported properly to
use that experience for re-plan the ongoing and future projects
due to poor coordination among related entities