Sep 22, 2021

Cabinet approves to increase national debt ceiling by another Rs. 400bn

The Cabinet of Ministers has approved to increase the credit limit of Rs. 2997 billion approved by the Appropriation Act No. 7 of 2020 by another Rs. 400 billion to Rs. 3397 billion.

The proposal has been submitted by the Minister of Finance - Basil Rajapaksa.

The Cabinet has also given its consent to take necessary steps to amend the Appropriation Act No.7 of 2020.

The list of cabinet decisions published by the Department of Government Information says :

Amendments to the Appropriation Act No.7 of 2020 – (Subject No.31)

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 have arisen due to the Covid -19 pandemic and increased expenditure in several other sectors including health care expenditure as well as 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 which are paid salaries from their income. Accordingly the Cabinet of Ministers approved the proposal submitted by the Minister of Finance to increase the credit limit of Rs. 2997 billion approved by the Appropriation Act No. 7 of 2020 by another Rs. 400 billion to Rs. 3397 billion and to take necessary steps to amend the said Appropriation Act.

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