Basil’s proposal providing Rs.4 mln each to local authorities suspended

The Finance Ministry has decided to suspend the proposal made by former Finance Minister Basil Rajapaksa in Budget 2022 to allocate Rs. 4 million to each of the 4,917 local government divisions amounting to Rs. 19.67 billion in total.

The former minister’s move to allocate Rs. 85 billion for rural community development will also be suspended.This is in line with a review of possible expenditure cuts across the country’s blown-up public sector especially including local government institutions which have become a heavy burden at present.It has been observed that there were many discrepancies and financial leakages in current annual budgets of most of the local bodies which were passed by the ruling members amidst unruly protests and brawls at their meetings.

Local government institutions have now become white elephants with rampant corruption, waste and financial misappropriation of ruling party members who have become millionaires overnight, a recent audit report revealed.

The Sri Lanka Administrative Service Association has proposed to the new administration to immediately dissolve local government bodies while bringing the system under special commissioners.

This proposal is now under the consideration by the Finance Ministry which is slashing infrastructure and development projects to re-direct funds into a 2-year relief programme.

Deputy Chairman of the Association Dhammika Muthugala said that these institutions have become a massive financial burden and its members have taken the law onto their hands with the doubling of their numbers at present.

The governing terms of 340 local bodies — 24 municipal councils, 41 urban councils and 275 pradeshiya sabhas – have already been expired but was extended by one year.

The expenditure for the maintenance of these bodies including the payments of elected members at present is unbearable under the present situation of financial difficulties and the economic crisis faced by the country, he pointed out.

The monthly expenditure of certain mayors of Municipal Councils stood at over Rs.1 million, a recent parliamentary consultative committee report divulged.

The dissolution of local government institutions by the new administration with the cabinet approval will save at least 30, per cent of the budgetary allocation made by the Treasury, he disclosed.

Heads of village committees, youth organisations and rural community activists have brought to the notice of the then government to direct all members of local government bodies to declare their assets and explain to villagers as to how they have become rich with many properties within a short period, the report revealed.