Pay hike or development

17 November 2010 06:25 pm

President Mahinda Rajapaksa told the Cabinet today that the government would be compelled to forgo the mega development projects if substantial salary increases were announced in the budget for the public servants.
 
President Rajapaksa announced at the Cabinet meeting today that it would cost Rs.1.4 billion a month for the government to increase the salaries of public servants by Rs. 100 a month.  At this point, Education Minister Bandula Gunawardane had reportedly pointed out that the government’s salary bill for the public servants is Rs. 500 billion out of its total annual revenue of Rs. 800 billion. (Kelum Bandara)