Govt. to raise Rs. 400 b via T-Bills to pay wages

Opposition Leader launches broadside on failure of economic pundits of UNP
Govt. says Treasury broke hence urgent P’mentary approval needed to issue T-Bills to pay public sector salaries before Sinhala-Tamil New Year
Treasury Bill issuance threshold to be increased by 47% to Rs. 1.25 trillion from Rs. 850 billion
By Jayashika Padmasiri

* Opposition Leader launches broadside on failure of economic pundits of UNP
* Govt. says Treasury broke hence urgent P’mentary approval needed to issue T-Bills to pay public sector salaries before Sinhala-Tamil New Year
* Treasury Bill issuance threshold to be increased by 47% to Rs. 1.25 trillion from Rs. 850 billion

Opposition Leader Nimal Siripala de Silva yesterday revealed that aside from the Treasury Bond fiasco centring around present Central Bank Governor Arjuna Mahendran, the Government was seeking permission to sell Rs. 400 billion worth of Treasury Bills as it could not afford to pay salaries to Government workers.

Addressing the media yesterday, Silva said that Prime Minister Ranil Wickremesinghe and his Government, which he noted was filled with “economic pundits” who boasted that they would develop the country’s economy, had failed to do this task and had driven the country deeper into debt.

“In Parliament the Government is going to seek permission to issue Rs. 400 billion worth of Treasury Bills. When we asked them what the hurry was to do this today (Tuesday) in Parliament we were informed that this money was needed to pay salaries for government workers before 10 April as there was no money in the Treasury.

This proves how this Government has failed to develop the country’s economy as it is trying to pay salaries to people by selling Treasury Bills,” Silva said.

“Prime Minister Ranil Wickremesinghe and his Government filled with “economic pundits” who boasted that they would develop the country’s economy have failed to do this task and have driven the country deeper into debt. In Parliament on Tuesday the Government is going to seek permission to issue Rs. 400 billion worth of Treasury Bills. When we asked them what the hurry was we were informed that this money was needed to pay the salaries of government workers before 10 April as there was no money in the Treasury. This proves how this Government has failed to develop the country’s economy as it is trying to pay salaries to people by selling Treasury Bills – Opposition Leader Nimal Siripala de Silva”

As per the schedule of Parliament, the regulations under the Registration of Title Act was to be taken up today. However, Silva said the Government moved the Treasury Bill issuance as more urgent.

The Government separately said it will increase the Treasury Bill issuance threshold by 47% or Rs. 400 billion, to Rs. 1.25 trillion from Rs. 850 billion previously. At present the total outstanding Treasury Bill was Rs. 829.2 billion.

The Opposition Leader claimed that the country’s economy under the leadership of Premier Wickremesinghe had only declined while corruption and other malpractices increased in the country.

“There is no good governance under the United National Party (UNP) or governance of the economy. They are only taking the country into an abyss while making it more indebted. This is why they are asking for an election soon. Nevertheless, when it comes to this Government what has been told and what is being done by them are two different things. However, it is clear to us that this year the people will have a very miserable Sinhala and Tamil New Year because of the actions of this Government,” Silva said.

http://www.ft.lk/2015/04/07/govt-to-raise-rs-400-b-via-t-bills-to-pay-wages/

Should never borrow to meet recurring revenue expenditure.

This is applicable to individuals as well as for the country.

Exactly, but this is what we have been doing and tolerating hitherto.
When the IMF and World Bank said so, the politicians want to gain mileage by lambasting those institutes.
And our gullibles swallow, all what they say on stages too.

Future123 wrote:Should never borrow to meet recurring revenue expenditure.
This is applicable to individuals as well as for the country.