Cabinet nod to increase govt. credit limit by Rs.400 billion

(FASTNEWS | COLOMBO) – The proposal by the Ministry of Finance to increase the government credit limit by another Rs.400 billion to Rs.3,397 for the year 2021 has been approved.

The Cabinet Paper states that the approved credit limit has to be raised for the year 2021 due to declining government revenue owing to the coronavirus situation and increased expenditure in several other sectors including healthcare expenditure, social security protection for those who lost income and additional provisions for salaries and other expenses due to the loss of income.

Accordingly the Cabinet of Ministers approved the proposal submitted by the Finance Minister to increase the credit limit of Rs.2,997 billion approved through the Appropriation Act No.7 of 2020 by another Rs.400 billion to Rs.3,397 billion and to take necessary steps to amend the Act.