The proposals presented under the 2021 Budget will come to effect from today, the Finance Ministry said.

Though the budget proposals were scheduled to be implemented from next year, the Government had decided to implement it with immediate effect to enhance the welfare of public servants, small and medium scale entrepreneurs, youth, dairy farmers and students.

Accordingly, decisions have taken to reduce the maximum interest rate charged on housing and property loans to public servants through state banks to 7%.

The interest rate charged on public servants for the current and future housing and property loans, was reduced to 3% for the first Rs.500,000 and 7% for the category from Rs. One million to three million.

Public servants who obtained loans of Rs. 2 million, would get a benefit of Rs. 2,500 and it would help them to an annual savings of Rs. 30,000. 

Although the budget did not provide any direct salary increase, it would provide a maximum of Rs. 2,500 increase, the Finance Ministry said. (Chaturanga Samarawickrama)