Government Accountability Concerns Rise as Implementation Status of 71% of Key Expenditure Proposals in Sri Lanka’s Interim Budget 2022 Remains Unknown
A recent report by Verité Research has raised concerns about the accountability of the Sri Lankan government in implementing key expenditure proposals outlined in the Interim Budget 2022. According to the report, the implementation status of 71% of the highest value expenditure proposals, amounting to LKR 46.8 billion, remains unknown. This lack of transparency is particularly worrying considering the country’s current economic crisis.
Verité Research has been monitoring budget promises since 2017 and found that the Interim Budget 2022 has the highest proportion of undisclosed information regarding expenditure proposals. Over the past five years, on average, 38% of expenditure proposals lacked disclosure of progress.
What is particularly troubling is the lack of information provided by government agencies regarding the Interim Budget 2022 proposals, even when requests were made under the Right to Information (RTI) Act. This trend of poor disclosure has persisted since 2017.
In their assessment of the Interim Budget 2022, Verité Research tracked 24 expenditure proposals with a total allocation of LKR 50.5 billion. However, they only received sufficient information to assess the progress of seven proposals. Shockingly, the assessment revealed that as of December 31, 2022, only one proposal had been fulfilled.
The findings published on Verité Research’s ‘Budget Promises’ dashboard, available on the publicfinance.lk platform, have shown that confusion over responsibility for implementation is a key factor contributing to poor disclosure. The National Budget Department (NBD) of the Ministry of Finance, which is responsible for budget implementation, lacks awareness of which agencies are accountable for implementing the proposals. In fact, the agencies identified by NBD claim they are not responsible for implementing 17 out of the 24 proposals tracked.
This raises serious concerns about the government’s accountability in delivering on promises made by the Minister of Finance in his budget speech. It is uncertain whether Sri Lanka can truly expect a sustainable change in its economic trajectory without addressing the core problem of transparency and accountability in managing public funds.
Enhancing fiscal transparency is crucial to reduce corruption vulnerabilities and restore long-term economic and political stability, as highlighted in Sri Lanka’s commitments with the International Monetary Fund (IMF). Transparently disclosing how the government spends public funds is a critical step toward achieving these goals.
The Interim Budget 2022 was presented at a pivotal moment in Sri Lanka’s history, as the country grappled with an unprecedented economic crisis. The budget aimed to provide hope by laying the foundation for changing the country’s economic trajectory. However, the current findings cast doubts on whether this can be achieved without addressing the underlying issues of transparency and accountability.
It is imperative for the government to rectify this lack of disclosure and provide clear information on the progress of expenditure proposals. This will not only bolster public trust but will also reinforce the country’s commitment to fiscal responsibility. Sri Lanka’s future economic and political stability depends on addressing these crucial concerns and ensuring the accountable utilization of public funds.
