Govt. credit limit to increase by Rs 400B
The Cabinet has granted approval to increase the government credit limit by another Rs.400 billion for the year 2021.
Basil Rajapaksa, Minister of Finance, submitted the Cabinet Paper with this proposal.
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 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 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.