‘Wiggie Asks For More’ & Allocation Of Funds To PCs

By R.M.B Senanayake –May 30, 201

R.M.B Senanayake

Allocation of Funds to the Provincial Councils should be on rational objective criteria

I refer to the news item “Wiggy asks for more” referring to the request of the Northern Provincial Council for more funds. It is time to consider a rational basis f allocation of funds to the Provincial Councils of the country. There is danger otherwise that in funding Provincial Councils kissing will go by favor and there may be discrimination against the PCs which have members of the Opposition parties. In the case of the Northern and Eastern Province unless funds are allocated on a rational basis there could be allegations of discrimination on grounds of ethnicity and religion. When the Provincial Councils were established there was also set up a statutory body called the Finance Commission.

The Finance Commission is to consist of the following Members

(a) The Governor of the Central Bank of Sri Lanka;

(b) The Secretary to the Treasury; and

(c) Three other members to represent the three major communities each of whom shall be a person who has distinguished himself, or held high office, in the field of finance, law, administration, business or learning.

The Finance Commission is charged with the task of recommending to the Government the basis of allocation of funds to meet the needs of the Provinces. The 13th Amendment which established the Provincial Councils set up the Finance Commission to carry out the allocation of funds to the Provincial Councils.

The Commission is responsible for the allocation of funds to the Provincial Councils based on such plans and budgets reviewed and evaluated by the Commission. Under the 13th Amendment the Commission recommends to His Excellency the President annually the principals on which funds allocated for the Provincial Councils by the Central Government should be apportioned among the Provinces. The Finance Commission is also expected to monitor the activities of the Provincial Councils to ensure the optimization of the usage of such funds allocated so that planned benefits will accrue to the province and its people”.Read More