Cabinet Decisions: Govt. Borrowing limit to increase by Rs 400B
By Ishara Gamage
Cabinet has granted approval to increase the government Borrowing limit by another Rs400 billion for the year 2021. Minister of Finance, Basil Rajapaksa submitted the Cabinet Paper with the proposal. The Cabinet Paper states that the approved Borrowing limit has to be raised for the year 2021 due to declining government revenue owing to the COVID-19 situation and increased expenditure in several other sectors including healthcare, 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 approved the proposal submitted by the Finance Minister to increase the Borrowing 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