Government faces the daunting task of bridging the budget deficit

Such outstanding unpaid bills amounted to LKR 243 billion, while the foreign debt financed expenditure which amounted to LKR 212 billion, remained unaccounted due to the approved borrowing limit being exceeded, which resulted in the reported budget deficit for 2019, not reflecting the actual fiscal position, the finance ministry announced.  

The unreported government expenditure included an outstanding amount of LKR 23.9 billion for fertilizer and LKR 31.4 billion for the purchase of medicine, LKR 119 billion for the construction industry, LKR 45.8 billion for elders’ interest subsidy and LKR 22.1 for services made available to Ministries and Departments.

The policy of the government is to change the disastrous socio-economic path that the country has embarked on, in the last five years, the finance ministry said.

A market economy that is dependent only on tea and apparels, with imports that is twice that of the exports without value additions to local resources and raw materials, will not facilitate a sustainable development. .

Under the 100,000 km of roads programme, 3 projects of 10,000 km are being implemented, 10,000 bridges are being constructed, while 5,000 bridges have reached the final stage of construction, finance ministry disclosed  

Pipe borne water connections will be provided to 429,000 houses under the “Water for All” programme. 14,000 houses under “One House for One Village” programme are being constructed.

The first 20,000 houses of the 100,000 houses programme under the Urban Development programme have also commenced.