State expenses are to be cut down

The Government has decided to minimize state expenses in view of the current economic crisis faced due to the coronavirus pandemic.

The Cabinet has been informed by Finance Minister Basil Rajapaksa that state revenue has decreased drastically as a result, and hence, it was not possible for recurrent expenditure.

The recurrent expenditure for this year may exceed the estimated amount, due to reasons such as the vaccination drive, additional expenses in the health sector, and provision of relief allowance, he pointed out.

Ministry secretaries have been directed by the Finance Ministry to suspend projects such as the construction and renovation of buildings that are yet to commence despite the allocation of funds.

The Government has also decided to suspend all recruitments for state services.

The Finance Ministry has further instructed Ministry secretaries to submit a detailed report on the money that can be saved by restricting state expenses.