Sri Lanka is now preparing 2021 budgetary estimates pruning government expenditure amidst Covid-19 pandemic repercussions as the government expenditure is expected to rise accordingly. .
The government is compelled to tackle macroeconomic instability by reducing the budget deficit; increase tax revenue and the tax base; and rationalize expenditures.
On top of all that, the government is supposed to manage massive debt repayments due in 2019 and 2020.
Under this set up .Finance Ministry has issued strict guidelines to State institutions for preparation of their Budget for 2021.
The ministry will be putting curbs on funding for new or stalled projects, maintenance of project offices and staff, and imposing a ban on construction of new buildings for government institutions for the next two years.
Finance Ministry Secretary S.R. Attygalle issued a circular recently detailing the guidelines for the preparation for the Budget estimates for 2021 ..
It said that even though the COVID-19 situation in the country has been brought under control, it is vital that the economic fallout caused by it is minimised, and hence there has to be strict control over public finances.
Unnecessary expenditure will be halted giving priority to effective management of Government finances with the Budget estimates prepared in keeping according to strict fiscal discipline.
(LIN)