News
Recruitment frozen to public sector
View(s):Series of directives to reduce government expenditure
Public sector recruitment for next year has been frozen, the Finance Ministry has informed all state institutions.
The Government’s significant decrease of revenue collection and mounting expenditure have been cited as reasons for the decision, which is among a series of other directives aimed at keeping state expenses low.
In a circular, state institutions have also been directed that no new office equipment should be bought.
The directives from Finance Ministry Secretary K.M. Mahinda Siriwardana have been issued ahead of submitting proposals for next year’s Budget which is due to be presented to Parliament in November.
Department heads, ministry secretaries, and Provincial Councils Chief Secretaries have also been advised to refrain from proposing foreign training for state employees using money from the Consolidated Fund. The directive also applies to State-Owned Enterprises.
“Only the training which has already begun will be considered and any other training requirement should be organised through virtual modes.
Local training initiatives will also have to be strictly restricted to requirements purposes only,” Secretary Siriwardana said in a six-page circular detailing the Government’s plans to further reduce state expenditure for the upcoming year.
The secretary also made it clear that allocating funds for new programmes under the upcoming budget would be difficult during the 2022-2025 period.
He has instructed departments to re-evaluate the projects that are currently underway on a priority basis for identified projects such as securing renewable energy, upgrading public transport, attracting Foreign Direct Investments (FDIs) and reviving the tourism sector.
Projects that are currently under implementation process or partly being implemented need to be re-evaluated with recommendations of the National Planning Department before continuing those projects, the circular added.
“Any Public Private Partnership projects need to ensure Treasury contribution at a minimum level and encourage business models that can generate income to meet the expenses rather than depending on annuity payments to private companies from the Government,” the circular said.
When it comes to development grants and welfare expenses, no new such programmes can be introduced under budgetary allocations other than the ones which are approved by the Cabinet of Ministers. The number of beneficiaries for the existing welfare schemes should not be increased without Cabinet approval as well, the circular added.
The 2023 Budget is being prepared with the aim of increasing the country’s Gross Domestic Product (GDP) by 2% by the end of 2025, the circular noted.
While increasing government revenue is a priority, this will take some time. As such, it is essential to take alternative steps to minimise expenditure and ensure government services, the Secretary said.
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