The funds allocated for Provincial Councils by the Central Government through its Budget 2017 have not been curtailed in any form, Finance Minister Ravi Karunanayake said.
He pointed out that there is no truth in the charges by certain Provincial Council Chief Ministers that Budget 2017 has curtailed the money allocated for Provincial Councils compared to previous budgets.
Karunanayake said that the pattern of Budget allocation to Provincial Councils has been changed this time by providing some funds directly to line ministries.
Provincial Councils will be unable to use government funds for wasteful activities such as foreign trips and money will be used to provide public amenities in the province, he said.
Regular funds will be provided to Provincial Councils as in the past but other funds have already been allocated to line ministries according to the requirements of such ministries, the minister said.
In addition, vehicle registration fees, stamp fees, courts penalties, local government taxes and different types of revenues other than taxes collected by local government institutions will not be deposited to the consolidated fund. They will be deposited to the Provincial Council Fund instead, Karunanayake said.