Development projects set to kick off in February: Bandula

Monday, 22 January 2024 02:11 - - {{hitsCtrl.values.hits}}

Minister Bandula Gunawardena

Transport Highways and Mass Media Minister Bandula Gunawardena last week revealed that the development schemes are set to begin in February following the finalisation of agreements related to the debt restructuring and ongoing discussions with foreign creditors.

Speaking to journalists at the Presidential Media Centre under the theme ‘Collective Path to a Stable Country,’ he highlighted key aspects of the upcoming initiatives.

The restructuring of foreign debt, reaching its final stages, signals the impending resumption of halted development projects in the country,” he said.

According to him, Rs. 150 million has been allocated to the District Development Committees, under the relevant Chairmen, specifically for road development. In addition, Rs. 50 million has been earmarked through the Rural Affairs Ministry for the development of small roads.

Gunawardena said a $ 60 million loan from the World Bank and financial assistance from the Samurdhi Fund will also be utilised for road repairs.

Delving into the financial landscape, he stressed the importance of prudent financial management in the challenging year ahead.

“In 2022, the Government’s total tax revenue reached Rs. 1,751 billion, with a substantial portion allocated to public employee salaries, pensions, and support for the less privileged,” he added.

The Minister acknowledged the balancing act required to manage expenses, including interest payments on loans and capital expenditures.

He outlined the earnings of various Government departments in 2023, underscoring the challenges faced despite increased income.

“Inland Revenue Department (Rs. 1,550 billion), Customs Department (Rs. 922 billion), Excise Department (Rs. 169 billion) and Motor Vehicle Department (Rs. 20 billion). Despite an increase in income and various strategies in 2023, the expenditure (Rs. 3,201 billion) outpaced revenue, resulting in a deficit,” he explained.

Gunawardena also said in 2023, the Government spent Rs. 2,160 billion on subsidies, Rs. 2,263 billion on interest payments and a total of Rs. 4,394 billion for administration costs, while its income for the year was Rs. 3,201 billion.

“The Government borrowed extensively, with Rs. 10,091 billion borrowed domestically through Treasury Bills and Treasury Bonds,” he added.

Despite financial challenges, the Minister assured significant allocations have been made for the Chairman of District Development Committees, indicating a commitment to infrastructure improvement.