This massive expenditure has to be made from the government revenue including the revenue from taxes and borrowings, a senior official said adding that if there is any shortage of money then the treasury will have to borrow money credited to consolidated fund by state institutions.
Under this set up it has to obtain Rs. 10 billion credited to the consolidated fund by Telecommunication Regulatory Commission (TRC) to bridge the shortage of money required to pay salaries and allowances of public servants this month.
Without mentioning the normal treasury procedure MP Wijedasa Rajapaksa told a media conference recently that the treasury has made request from TRC to grant Rs 10 billion to pay salaries of public sector employees.
This was misleading statement as the treasury is empowered to use public sector institutions contributions to consolidated fund, he claimed.
Treasury is committed to ensure efficiency, economy and safety in handling funds belonging to the Consolidated Fund and other Treasury Funds in order to harmonize the Government expenditure, programmes with the revenue plans and borrowing programme, while providing stewardship towards fund accounting, including foreign borrowings, he said.
The salary increment and other allowances for public servants proposed by Finance Minister Mangala Samaraweera in his budget 2019 is effective from July 01.
Accordingly, all public servants will receive an additional monthly allowance of 2500.00 rupees, the Finance Ministry said issuing a statement.