Treasury faces severe shortage of funds
The Sri Lanka Treasury is experiencing a severe shortage of cash-flow making it difficult to meet expenses of ministries and state-owned institutions including corporations and boards, Finance Ministry sources disclosed.
At present it receives Rs. 145 billion
a month but revenue for the first three months this year is expected to reduce beyond targets, a senior Ministry official said.
The Treasury has to spend Rs. 93 billion to pay salaries of public sector employees, Rs. 27 billion for pensions and Rs. 6 billion for Samurdhi per month.
According to financial estimates and provisional data, the total expenditure a month on salaries, pensions, Samurdhi and
other welfare activities, will be around
Rs. 154 billion.
Under this set up the Treasury is facing a shortageof funds owing to revenue collection and generation issues triggered by the current economic crisis, he revealed.
The total allocation for the ministries from the Budget 2023 was Rs. 4610.49 billion as recurrent expenditure and Rs.2025.44 billion as capital expenditure.
Despite the current economic pressure, the government is compelled to carry out urgent reforms including loss-making state-owned business enterprises and raise revenue while strictly imposing new taxes as cutting down on public sector salaries, pensions and welfare is not possible, he added.
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