Cabinet nods to increase govt credit limit by another Rs 400 bn
September 22, 2021 12:11 pm
The Cabinet of Ministers has approved a proposal to increase the Government Credit limit of Rs. 2,997 billion by another Rs.400 billion, thus increasing amount to Rs 3,397 billion.
The Appropriation Act No. 7 of 2020 has approved a credit limit of Rs. 2,997 billion for the year 2021.
However, the approved credit limit has to be raised for the year 2021 due to declining government revenue under the situation that has arisen due to the COVID -19 pandemic.
There has been an increase in expenditure in several sectors including health care expenditure as well as a social security protection for those who have lost income and having to make additional provisions for salaries and other expenses due to the loss of income of institutions that are paid salaries from their income.
Accordingly, the Cabinet of Ministers approved the proposal submitted by the Minister of Finance to take necessary steps to amend the said Appropriation Act and increase the credit limit of Rs. 2997 billion approved by the Appropriation Act No. 7 of 2020 by another Rs. 400 billion.
