In the wake of financial constraints and heavy state borrowings, finance ministry has directed ministries, departments and public institutions to tighten belts further pruning capital expenditure by 10 percent during the remaining two and half months period this year.
The state institutions will have to save at Rs.5.2 billion out of Rs.52.75 billion by curtailing capital expenditure in the rest of the year in spite of heavy recurrent spending of Rs4 billion for upcoming presidential poll.
The treasury has already saved 15 percent of the capital expenditure of Rs 211 billion allocated for the hole year from the budget 2019 in consultation with all spending agencies, Treasury secretary Dr. R.H.S Samaratunge emphasised issuing special circular recently.
In this circumstances, all ministries and public institutions have been directed not to spend financial allocations for the non-priority nature projects, the projects which have not yet been started including those associated with budget proposals and purchase of non-essential items such as, furniture, office equipment etc.
The implantation of such projects and purchase of non essential items will be postponed for next year, the circular indicated. .
Further, purchasing of vehicles for ministries and state institutions is temporarily terminated until further notice and those agreed procurement for which the process has not yet been initiated should also be suspended with immediate effect.
Expenditure control is essential in obtaining services under agreements especially in respect of electricity, water, telephone, fuel and purchasing, he specifically mentioned in the circular issued in June directing state institutions cut 15 percent of the capital expenditure.
The 15 percent saving equivalent to Rs 31.65 billion in capital expenditure has been achieved with the support of all ministry secretaries, chief secretaries of provincial councils, heads of departments, corporations and statutory boards who have been strictly adhered to public administration circulars in paying fuel, telephone, travelling bills..
(LI)