Wednesday, 22 July 2009 9:24 AM

Government Denies Cutting Its Budget

The government has clarified that it has not cut its budget.

Under Secretary Finance, Elizabeth Kausimae, says people should not be confused about the measures that the government is taking to control its spending.

Ms Kausimae says one of the control measures is the setting aside of 35 percent of the national budget.

She says initially, the government had announced the reservation of 10 percent of the budget.

Ms Kausimae says the government has now increased the reserve amount by another 25 percent bringing the total reserve sum to 35 percent.

She says the government may use any percent of the 35 reserve percent it considers appropriate towards the end of September this year.

Ms Kausimae says if the government does not take any control measures now, it will not have any money to operate on by the end of the year.

She says the government has advised all Ministries and agencies about theses control measures and urged them to prioritises their spending.


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