A proposal from minister Basil to take another loan 

A proposal from minister Basil to take another loan 

It is no secret that Sri Lanka is facing a severe economic crisis. Therefore, there is no limit to the amount of loans obtained from different countries from time to time. Sri Lanka will have to pay another large sum of money to the international community as loan installments by December.

Meanwhile, the government is looking forward to borrowing Rs.38,400 million from local and foreign sources to cover next year’s budget deficit.

The Budget Appropriation Bill for next year will be presented to the Cabinet by Finance Minister Basil Rajapaksa today (27) and it will include this loan proposal.

The total recurrent expenditure next year is estimated at Rs.2877 billion and the capital expenditure is estimated at Rs.255 billion.

Accordingly, the total expenditure of the government next year is estimated to be around Rs.53,400 million.

Meanwhile, it was recently reported that Ajith Nivard Cabraal has printed Rs.4,784 crore since his re-appointment as the Governor of the Central Bank.

Ajith Nivard Cabraal was appointed as the Governor of the Central Bank on the 15th. Former Governor Ranjith Keerthi Tennakoon had said that the day after he became the Governor of the Central Bank, the Central Bank had printed Rs.45,950 million and another Rs.1890 million had been printed since then (24).

Ajith Nivard Cabraal had said that printing money in this manner was not a reason to increase inflation in the country. But he has forgotten that if the country’s output income is lower than the amount printed, it is a cause of inflation.

Doesn’t Sri Lanka continue to be indebted to the international community for future generations to become a debt-paying nation?

 

Shani

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