Treasury Secretary Files affidavit to supreme courts Difficult to find funds for an election

• With foreign financing options as well as domestic financial channels being exhausted , the cash flow management of the government has become extremely challenging at present

Treasury Secretary Mahinda Siriwardane who submited an affidavit to Supreme Courts where he had said the cash flow management of the government has become extremely challenging and is a difficult task to find funds for an election.   

“ With foreign financing options as well as domestic financial channels being exhausted , the cash flow management of the government has become extremely challenging at present. In 2022 , average monthly expenditure on salaries, based on the government cashflow, was around Rs.90 billion, monthly pensions and Samurdhi payments amounted to around Rs.28 billion while other recurrent expenditure , including medical supplies,fertilizer etc amounted to around Rs.28 billion while total expenditure was Rs.145 billion per month. Compared to this , monthly government revenue was Rs.163 billion based on the 2022 cashflow,” the affidavit said.   

“ Hence it is emphasized that extreme care is necessary in deciding on the primary areas of expenditure, given the critical cashflow position and the need for managing mandatory and essential expenditure and the needs as well. Any slippage would simply add to the already stressed fiscal position, in turn burdening the general public,” the affidavit added.   
“ Given the latest developments, it is observed that the government’s daily cashflow has become extremely challenging in 2023 as well. Even the payment of regular public sector salaries on time has become extremely difficult , requiring innovative methods to manage mandatory payments particularly first few months of 2023.