Highest allocation for Finance Ministry

By Saman Indrajith

The Appropriation Bill for the financial year 2025, outlining government expenditure totaling Rs. 4,616 billion, was presented to Parliament yesterday.Prime Minister Dr. Harini Amarasuriya tabled the bill during its first reading, setting the stage for a detailed debate and approval process.

According to the Parliament’s schedule, the second reading of the bill will take place on February 17, 2025, followed by a debate from February 18 to February 25. The second reading vote is slated for the evening of February 25. The Committee Stage Debate, also known as the Third Reading Debate, will run from February 27 to March 21, culminating in the third reading vote on the evening of March 21.

The total expenditure for 2025 has been allocated across various ministries and special spending units, reflecting the government’s fiscal priorities. The highest allocation has been made to the Ministry of Finance, Planning, and Economic Development, which has been allocated Rs. 484 billion for recurring expenses and Rs. 229 billion for capital expenditures, totaling Rs. 713 billion. Similarly, the Ministry of Defence is set to spend Rs. 382 billion on recurring costs and Rs. 60 billion on capital initiatives, while the Ministry of Justice and National Integration has been allocated Rs. 38 billion and Rs. 16 billion for recurring and capital expenditures, respectively.

The Ministry of Buddha Sasana, Religious, and Cultural Affairs has been allocated Rs. 8.3 billion for recurring expenses and Rs. 5.4 billion for capital projects.

The Ministry of Health and Mass Media will manage Rs. 412 billion in recurring costs and Rs. 95 billion for capital development. The Ministry of Foreign Affairs, Foreign Employment, and Tourism will spend Rs. 19.4 billion on recurring expenses and Rs. 2 billion on capital projects. In contrast, the Ministry of Trade, Commerce, Food Security, and Cooperative Development has been assigned Rs. 2.6 billion for recurring expenditures and Rs. 397 million for capital outlays.

The Ministry of Transport, Highways, Ports, and Civil Aviation will handle Rs. 52.4 billion for recurring costs and a significant Rs. 421 billion for capital works. The Ministry of Agriculture, Livestock, Lands, and Irrigation will allocate Rs. 83 billion for recurring expenses and Rs. 124 billion for capital development. The Ministry of Energy has been provided Rs. 1 billion for recurring expenditures and Rs. 20 billion for capital projects, while the Ministry of Urban Development, Construction, and Housing will manage Rs. 3 billion in recurring expenses and Rs. 98 billion in capital investments.

Smaller allocations include Rs. 24 billion and Rs. 5 billion for recurring and capital expenditures, respectively, for the Ministry of Rural Development, Social Security, and Community Empowerment. The Ministry of Education, Higher Education, and Vocational Education will spend Rs. 206 billion on recurring expenses and Rs. 65 billion on capital projects. The Ministry of Public Administration, Provincial Councils, and Local Government will oversee Rs. 463 billion for recurring costs and Rs. 33 billion for capital works.

Other ministries include the Ministry of Plantations and Community Infrastructure, with Rs. 5.4 billion for recurring expenses and Rs. 11 billion for capital projects; the Ministry of Industries and Entrepreneurship Development, with Rs. 4 billion and Rs. 8 billion, respectively; and the Ministry of Fisheries and Aquatic Resources, with Rs. 6.2 billion for recurring costs and Rs. 5.2 billion for capital initiatives.

Additionally, the Ministry of Environment has been allocated Rs. 12 billion for recurring expenses and Rs. 3.5 billion for capital development. The Ministry of Women and Child Affairs will receive Rs. 14 billion for recurring costs and Rs. 392 million for capital projects. The Ministry of Digital will manage Rs. 6.7 billion and Rs. 6.8 billion for recurring and capital expenditures, respectively.

Further allocations include Rs. 159 billion for recurring and Rs. 16 billion for capital expenses for the Ministry of Public Security and Parliamentary Affairs. The Ministry of Labour will handle Rs. 4.3 billion and Rs. 1.7 billion for recurring and capital expenditures, respectively. The Ministry of Youth Affairs and Sports has been allocated Rs. 7.1 billion for recurring expenses and Rs. 5 billion for capital initiatives. Finally, the Ministry of Science and Technology will spend Rs. 2.8 billion on recurring costs and Rs. 2.2 billion on capital projects.

Special spending units also received allocations. The President’s operational activities have been allocated Rs. 2.5 billion recurring and Rs. 354 billion for capital expenditures, with an additional Rs. 20 million recurring and Rs. 100 million for capital development activities. The Office of the Prime Minister will receive Rs. 1 billion for recurring expenses and Rs. 71 billion for capital projects. The Judges of the Superior Courts will manage Rs. 451 million for recurring costs and Rs. 30 million for capital works, while the Office of Cabinet Ministers will handle Rs. 205 million recurring and Rs. 25 million in capital expenditures.

By Saman Indrajith

Energy Minister Engineer Kumara Jayakody informed Parliament yesterday (9) that reducing electricity tariff could not be effected overnight and it would take up to three years. He emphasised that no assurances had been given to reduce electricity prices immediately and urged patience as the government works toward achieving this goal.

Responding to a query raised by Kurunegala District SJB Parliamentarian Dayasiri Jayasekara, Minister Jayakody said, “Our goal is to reduce electricity tariff. However, we never claimed that would be done in a day or two; it will take up to three years. The public is currently bearing the consequences of corruption under the previous administration. The Ceylon Electricity Board (CEB) is burdened with Rs. 332 billion in debt due to excessive purchases of electricity at higher rates. Addressing these issues systematically is our priority.”

The Minister also noted that the CEB had initially proposed a 37% tariff hike, but the government had revised the proposal to minimise its impact. “We need to clear the lingering burdens from the past. We will not offer projects to associates or friends but will focus on implementing necessary reforms to lower electricity tariffs,” Jayakody assured.

MP Jayasekara highlighted earlier promises made by President Anura Kumara Dissanayake, who pledged to reduce electricity tariffs by 35% within a short period and lower the cost for households consuming 5,000 units from Rs. 6,000 to Rs. 3,000. “These promises influenced voters, but now the CEB says tariff reductions will not be possible until June. Small-scale industries are collapsing under the burden of excessive electricity costs,” he said.

Jayasekara also accused the government of failing to deliver on its promises and questioned the CEB’s reported profit of Rs. 167 billion, demanding clarity on when the issues would be resolved. “Over 56% of the electricity supply comes from hydropower, yet the public continues to suffer from high costs,” he remarked, calling the government a “fraudulent administration.”In response, Minister Jayakody denied that the government had absorbed any of the CEB’s debts and reiterated the need for systemic reforms to address the challenges in the energy sector.

Deputy Minister of Labour, Mahinda Jayasinghe, has announced a significant salary increase for public sector employees from Budget 2025.

The announcement was made in response to a query raised by MP Ravi Karunanayake during yesterday’s (09 ) parliamentary session.

The Deputy Minister also said the International Monetary Fund (IMF) had not raised any objections to increasing public sector salaries.

Commenting further, Deputy Minister Jayasinghe stated, “We didn’t specify

Rs. 25,000. Let’s wait and see the exact figure. (SI)