SRI LANKA - Ministry of Finance and Planning

KEY DECISIONS
HOW TO ALLOCATE
PUBLIC EXPENDITURE
Public spending decisions in the coming decade will be guided by
the following:
Macro Fiscal Stability
Gradual reduction of fiscal deficit towards five percent of GDP while targeting six
to seven percent of overall public investments, aiming at generating a revenue
surplus. This will involve recurrent expenditure being a clear monitoring variable.
Improved Flow of Budget Information
Investing in reliable and timely information on budgets and outcomes can have a
hugely positive impact on the ability of policymakers to make decisions. The flow
of budgetary information across Government ministries, agencies and provinces,
and the scope of what is made public at the central, provincial and district levels
are being expanded.
Establishing a Clear System for Assessing Costs and Benefits
The Government’s Public Investment Programme (PIP) translates policies into
actions using strategic targets and explicit cost-benefit analysis. This leads to
better decision and protects core and high priority programmes. Sequencing of
projects and identifying appropriate funding arrangements will be done within
the resource limits.
Sri Lanka - The Emerging Wonder of Asia
Fully Funded Recurrent Expenditure
The Mahinda Chintana pays attention to operation and maintenance
expenditure, as well as rehabilitation of existing assets to maximize productivity.
Recurrent expenditure on education, health and social spending has high content
of capital nature and the community involvements in such spending programmes
will be promoted for greater productivity, cost effectiveness and accountability.
Jana Sabha system is expanded to manage productivity aspects of rural centric
development initiatives and ensure effective coordination of service delivery of a
wide range of Government activities at the village level.
8