Public finance in times of crisis: The constitutional functions of President and Parliament

The constitutional functions of President and Parliament

- ASANGA WELIKALA AND SUREN FERNANDO

The potentially major economic consequences of the coronavirus pandemic the world over reminds us that, even in more normal times, the raising and spending of public money is a matter that has serious constitutional implications in democracies. Every constitutional democracy recognises that the Executive leads in a time of crisis, but every constitutional democracy also steadfastly holds that it is the Legislature that controls public money.

There are two central principles that ensure the accountability at the heart of the democratic ideal. The first is that the Executive cannot raise or spend a cent of public money without the prior approval of the Legislature. Thus, both the policies of the Government that involve the expenditure of public funds, and the plans and laws for imposing the taxes through which those moneys are raised, must first be approved by Parliament.

Parliamentary approval is usually signified by the annual Appropriation Act, although other legislation and procedures also provide a legal basis for Government expenditure. The second principle, which flows from the first, is that the Legislature must have the power to oversee public spending, and to ensure that the Executive adheres to the taxing and spending plans that the Legislature has approved.

Both these critical principles are clearly reflected in the Constitution of Sri Lanka (see Articles 148-152), underpinning the whole framework of the relationship between the Executive and Parliament in ensuring our system of democratic accountability. There are, however, limited exceptions.