Chairman of the Committee on Public Finance (COPF) Dr. Harsha de Silva has raised concerns over the government’s slow capital expenditure, warning that it could undermine economic growth and planned development targets.
According to de Silva, while the government has budgeted Rs. 1.4 trillion for capital projects this year, only Rs. 136 billion—less than 10%—was spent in the first four months.
He cited two main reasons for the delay: the initial reliance on a vote on account, which restricted the government’s ability to launch major projects or float tenders, and delays in disbursing funds to local government bodies due to the postponed elections.
“If current trends continue, Rs. 1.3 trillion out of the Rs. 1.4 trillion may remain unspent,” he said.
While higher-than-expected tax revenues have slightly boosted the primary balance, de Silva warned that the lack of capital investment could slow economic growth, potentially reducing the 5% growth seen last year to 3.2%.
He urged the government to revisit its capital expenditure plans, stating that without targeted investment, the desired economic and social transformation will not be achieved. (Newswire)