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Part III · Fiscal Responsibility

16. Deviation from the primary expenditure ceiling

Official English translation. The Sinhala text prevails. Open the official Sinhala text, official PDF on documents.gov.lk

(1)

Any deviation from the primary expenditure ceiling specified in the medium-term fiscal framework for any financial year, may be made by the Government only under the circumstances specified in subsection (2) and shall be subject to the procedures specified in subsection (3).

(2)

The Government may exceed the primary expenditure ceiling specified in the medium-term fiscal framework only in the unanticipated events or natural disaster posing significant threats to national security, national economic security or the public health and safety of the country which necessitate additional, temporary and targeted public expenditure beyond any contingencies included in the annual budget.

(3)

Where any situation specified in subsection (2) arises or is likely to arise that requires expenditure in excess of the primary expenditure ceiling specified in the medium-term fiscal framework, the Minister of Finance shall request by way of resolution, the approval of Parliament for the deviation from the primary expenditure ceiling and supplementary appropriations in excess of the primary expenditure ceiling specified in the medium-term fiscal framework.

(4)

The request referred to in subsection (3) shall be accompanied by, at a minimum –

(a)

a statement explaining the circumstances in consequence of which the need for such deviation arose, including supporting data, and how those circumstances justify the deviation;

(b)

a recovery plan that shall contain information and targeted actions to be taken to manage the circumstances specified in subsection (2) including additional spending, and actions to be taken by the

Minister of Finance to return to compliance with the primary expenditure ceiling, and the timeframe for such return to compliance;

(c)

a supplementary estimate proposal in line with section 26; and

(d)

an updated medium-term fiscal framework.

(5)

The documents specified in subsection (4) shall be published on the official website of the Ministry of the

Minister of Finance.

Part IV

Preparation and Approval of Annual Budget

Part V

Adjustments to the Annual Budget During the Year

Part VI

Budget Execution

Part VII

Financial Management

Part VIII

Statutory Funds

Part IX

Public Investment Management

Part X

Government Borrowings and Guarantees

Part XI

Accounting and Reporting

Part XII

State Owned Enterprises

Part XIII

Provincial Councils and Local Authorities

Part XIV

Cadre Management

Part XV

Offences and Penalties

Part XVI

Miscellaneous Provisions

Part XVII

Repeals

Part XVIII

Interpretation