The Ministry of Finance has decided to suspend the purchase of vehicles for state institutions until further notice. The Ministry has also decided to stop the commencement of new projects during the remaining two months of this year and also to postpone the purchase of non-essential office equipment until next year.
A circular in this regard, underlining the instructions, had been issued to all ministry secretaries, provincial chief secretaries, heads of departments and chairmen of all statutory bodies by the Secretary of the Ministry of Finance R. H. S. Samarathunga.
It is mentioned in this circular that in the aftermath of the Easter Sunday attacks, the government had not been able to achieve the income targets for this year and that government borrowings had also exceeded, therefore, measures have been taken to limit expenditure.
The Finance Ministry has also instructed all ministry secretaries, provincial chief secretaries, heads of departments, chairmen of corporations and statutory bodies to reduce their capital expenditure by 10%. On April 8 this year, similar instructions were issued to all the state institutions to strike off by 10% from their capital expenditure.
This circular notifies further that those projects which are considered not so important and those that have not been commenced yet are to be postponed until the next year.
Instructions have also been given by the Ministry of Finance, that with the view of better financial management for the rest of the year, to request from all state institutions to forward their expenditure plans to the National Budget Department immediately. (Ajantha Kumara Agalakada)