Tuesday, 11th May 2021

Finance ministry: media reports of cutting capital expenditure by 15% baseless

Colombo, June 20 (BAN/ AD): The Ministry of Finance has issued a statement claiming that media reports saying capital expenditure of the ministries had been cut by 15% were false. Today Finance ministry clarified on issue and said that a report has been published stating that a new decision was taken at the cabinet meeting on the 18th to prevent a financial crisis due to the government’s revenue shortfall and rising costs.

In fact, when the 2019 budget was presented, Finance Minister Mangala Samaraweera had proposed a saving of 10% to 15% from Capital and Goods and Services expenditure in this year’s budget (Proposal # ‘212’.). “Accordingly, all ministries are taking action to implement the proposal since the budget was passed and I wish to emphasize that this is not a step taken for any other reason.”

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