(COLOMBO, LANKAPUVATH) –The Ministry of Finance in a statement said the media reports that the capital expenditure of the ministries had been cut by 15% were false.
Clarifying the issue, the Ministry 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.”
“Considering the administrative processes that needs to be followed in executing the mandated work, I propose a saving of 10% to 15% from Capital and Goods and Services expenditure,” the relevant budget proposal says.