Jun 20, 2019

Media reports of cutting capital expenditure by 15% false, Finance Ministry says

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.

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