Cabinet nod to increase Government credit limit by Rs. 400 billion

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 the amount to Rs. 3,397 billion.

The Cabinet Paper states that the approved credit limit has to be raised for the year 2021 due to declining government revenue owing to the coronavirus situation and increased expenditure in several other sectors including healthcare expenditure, social security protection for those who lost income and additional provisions for salaries and other expenses due to the loss of income.

Accordingly the Cabinet of Ministers approved the proposal submitted by the Finance Minister to increase the credit limit of Rs.2,997 billion approved through the Appropriation Act No.7 of 2020 by another Rs.400 billion to Rs.3,397 billion and to take necessary steps to amend the Act.