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Wednesday, 1 September 2021 02:58 - - {{hitsCtrl.values.hits}}
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Finance Minister Basil Rajapaksa |
Finance Minister Basil Rajapaksa has informed the Cabinet of Ministers to strictly restrict all State expenses in a bid to improve fiscal management in the country.
“The Finance Minister informed the Cabinet of Ministers that Government revenue has been hampered due to the COVID-19 pandemic and to strictly restrict all unnecessary expenditure of all State sector institutions,” Cabinet Co-Spokesman and Plantation Industries Minister Dr. Ramesh Pathirana said at the post-Cabinet meeting media briefing yesterday.
The Finance Minister has ordered a review of some of the projects that were commenced prior to the pandemic and halting of unnecessary construction and renovation projects despite allocation of funds.
He also directed to cut down unnecessary allowances such as fuel offered to State sector workers during the lockdown period, whilst ordering to suspend all recruitment to the public sector.
“The focus of the Government right now is to accelerate the national vaccination program and open up the country for usual economic activities as soon as possible,” Dr. Pathirana added.
According to the Central Bank, during the first half of 2021 Government revenue rose to Rs. 714.5 billion from Rs. 663.4 billion a year earlier. Expenditure and net lending rose to Rs. Rs. 1.5 trillion from Rs. 1.4 trillion. Consequently the overall budget deficit rose to Rs. 780.2 billion from Rs. 735.7 billion in the first half of 2020.
