The Ministry of Finance has decided to strictly enforce the regulations imposed by the Ministry of Finance on Ministries and Government Institutions to limit government expenditure.
It is reported that a cabinet paper is to be presented today (07) informing the cabinet about this.
Accordingly, the Ministries have been instructed to manage their expenditure within the limits set out in the Appropriation Act 2022 and not to make requests for additional provisions.
It has also been instructed to reduce the fuel allowance paid to Ministers, Members of Parliament and all government officials who pay fuel allowances from the Consolidated Fund by five liters or so per month.
Methods will also be developed to reduce electricity costs by 10 percent.
Also, the construction of existing office buildings and new offices has been suspended for two years as proposed in the budget proposals.
Purchase of vehicles for government agencies will be suspended in 2022.
The recruitment of new staff has been suspended for institutions that have to bear foreign funds from the Consolidated Fund, except to fill vacancies in positions essential to the well-being of the institution.
New buildings have been advised not to be rented and it has been decided not to provide additional provisions for the payment of rent for buildings obtained without provision.
It has been advised that study tours abroad should not be organized using local funds and that officials should not participate in seminars and workshops at the expense of local funds unless certain official state specific participation is essential for Sri Lanka.
It has been advised that various allowances should not be paid on the internal instructions issued at the level of Ministries or Institutions without official authority and that new work should not be commenced without allocating funds to pay for manual or pending bills related to ongoing projects.
Also, telephone expenditure will be controlled through the implementation of the Public Finance Circular 2022-01-12. Section 6 (01) of the 2021 Act also advises against requesting additional provisions for new works.
