Siyambalapitiya outlines fiscal plan for public sector workers’ salary hike

Friday, 19 January 2024 01:48 - - {{hitsCtrl.values.hits}}

Says overall expenditure on State employee salaries expected to rise by Rs. 14 b after Rs. 10,000 salary increment
Affirms Treasury released funds for first phase of teachers’ salary hike

State Minister Ranjith Siyambalapitiya

State Minister Ranjith Siyambalapitiya provided insights into the Government’s fiscal strategy regarding the proposed Rs. 10,000 salary increase outlined in the 2024 Budget.

The overall expenditure on Government employee salaries is expected to rise to around Rs. 14 billion following the proposed Rs. 10,000 salary hike which was originally slated for April.

“At present, around Rs. 95 billion are allocated for Government employee salaries. With the first phase of the salary increase effective from January, an additional Rs. 7 billion will be disbursed,” he said.

Siyambalapitiya also clarified that the first phase, related to a Rs. 5,000 salary increment for teachers, has been initiated with funds released by the Treasury.

The State Minister emphasised the Government’s commitment to financial prudence, highlighting the cessation of money printing and borrowing. Instead, the focus is on managing expenses to ensure the sustainability of the proposed salary increments.

“This strategic approach aims to strike a balance between meeting the financial needs of Government employees, particularly teachers, and maintaining fiscal responsibility,” he explained.