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Message: <blockquote data-quote="fakerandi" data-source="post: 18640012" data-attributes="member: 73789"><a href="http://www.sundaytimes.lk/150621/news/borrowing-for-four-months-nears-the-whole-year-limit-154336.html" target="_blank">http://www.sundaytimes.lk/150621/news/borrowing-for-four-months-nears-the-whole-year-limit-154336.html</a>The Sri Lankan Government spending is running out of control with local and foreign borrowings soaring to more than Rs 1.7 trillion during the first four months of this year – an amount approaching the full year’s borrowing limit, Finance Ministry figures reveal.The total amount of loans taken by the Government in little over 120 days (upto April) is around 96 per cent of the total borrowing limit of the 2015 budget, a senior Finance Ministry official said, adding that some of the relief measures for people have been implemented even without the additional revenue, and it was borne mainly from existing taxes and debt.According to Finance Ministry data submitted to Cabinet this week by Minister Ravi Karunanayake, the total loans taken by the Government during the first four months of this year was Rs. 1.71 trillion as against Rs.1.78 trillion which is the approved amount of loans for 2015.Spending has skyrocketed while revenue has decreased owing to the delay in the implementation of revenue proposals, the public sector pay hike and slashing of prices of essential commodities and fuel. Last week the Business Times reported that delays in presenting three finance bills to impose the controversial Super Gains Tax (SGT), Mansion Tax and a casino levy had held up a projected Rs. 54 billion in tax revenue.These unplanned and unforeseen problems had forced more borrowing from the local market through Treasury Bills and Bonds and loans which were now nearing the approved limit of local borrowing for the whole year, he disclosed.reasury Bills and Bonds issued locally within the first four months of this year reached Rs.83.6 billion and Rs. 811.7 billion, respectively. A Finance Ministry official said the Government would continue to borrow through Treasury Bills to meet its expenditure.</blockquote>

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