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Monday, 17 May 2021 00:42 - - {{hitsCtrl.values.hits}}
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President Gotabaya Rajapaksa
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In a fresh bid to stimulate socioeconomic growth, notwithstanding the COVID-19 third wave and resultant restrictions, President Gotabaya Rajapaksa last week urged officials to fast-track development initiatives announced in the Government’s 2021 Budget. Via a new circular, President Rajapaksa, through Secretary Dr. P.B. Jayasundera, has solicited the commitment of all Secretaries to implement Government development programs by taking ministerial leadership in consultation with the relevant ministers.
Secretaries to all ministries and State ministries have been directed to ensure that decisions taken at the Budget framework and review meetings conducted by President Gotabaya Rajapaksa are implemented expeditiously.
“I advise that a dedicated senior officer is assigned in each ministry to ensure that decisions taken are expeditiously implemented,” President’s Secretary Dr. P.B. Jayasundera said in the latest circular, dated 12 May.
Jayasundera said it was the responsibility of the ministry secretary to seek further information and clarification from the President’s Office if further clarifications are required so that undue delays could be avoided from all sides.
“As all secretaries are aware, financial regulations permit secretaries to write directly to the heads of departments in the General Treasury to overcome such delays,” the circular said, adding that this is a reflection that the system of governance has always provided space to conduct public policy in the national interest.
The circular has been issued in relation to the implementation of Government-approved development programs in accordance with the 2021-2023 Budget.
Largely due to the COVID pandemic, the economy in 2020 contracted by 3.6%, marking the deepest recession since Independence. However, the Government has been inspired by an uptick in growth in the last two quarters of 2020.
The December 2020 quarter despite the second wave of COVID saw a 1.3% growth in comparison to a year earlier whilst September 2020 quarter recorded a 1.5% improvement year on year. The economy contracted by 1.7% in 2020 1Q and more sharply by 16.3% in 2Q.
Supported by policy stimulus and improving business sentiments, the Central Bank has projected a 6% growth for 2021, slightly above the 5.5% estimated by Government in its 2021 Budget. Multilateral donor agencies have also revised global growth projections upwards to 6% in 2021 and 4.4% in 2022.
However, in the 2020 Annual Report, the Central Bank cautioned that while addressing near-term vulnerabilities stemming from the pandemic remains an immediate priority, resolving the persistent structural impediments that hinder the country’s long-term growth prospects is essential in the period ahead.
It said the novel economic policy framework of the Government is expected to address impediments to growth and promote domestic production, especially through the agriculture sector and earmarked manufacturing and export industries while enhancing non-debt creating foreign exchange inflows. The challenges brought about by the pandemic reinforced the need for a novel approach to achieve sustained growth, development and long term stability of the economy.
In support of this framework, the Central Bank said the Government is expected to continue its pro-growth fiscal policy stance and actively implement productivity-enhancing reforms while remaining committed to ensuring fiscal consolidation over the medium term.
