Finance Circular Letter No. 1/2008

28th January, 2008

Vice-Chancellors of Universities,

Directors of Institutes,

Rectors of Campuses.

PUBLIC EXPENDITURE MANAGEMENT AND INCURRING EXPENDITURE FOR THE YEAR 2008

Your reference is invited to Finance Circular Letter No. 10/2007 of 14th December, 2007, allocating the Government grant for the preparation of the budget for 2008.

In keeping with the proposals made in the budget speech, the Secretary to the Treasury, by his National Budget Circular No. 137 dated 31.12.2007, has intimated to all spending agencies, the decision to freeze both recurrent and capital expenditure with a view to achieve efficient public expenditure management.

Recurrent Expenditure

Budgetary provisions for recurrent expenditure other than salaries, wages, pensions, subsidies and interest payments on public debt, have been reduced by 1.5%. This reduction has been fully absorbed by the contingency fund of the University Grants Commission, and will therefore not affect the recurrent expenditure budgets of the Universities and Higher Educational Institutions.

Capital Expenditure

Budgetary provisions on all capital expenditure items have been reduced by a flat rate of 7%. The capital budgets of all Universities and Higher Educational Institutions have accordingly been revised by reducing the original allocations by 7%. The revised allocations of your Institution are given in the Annex.

The UGC has already notified the Treasury, the revised allocations of all Higher Educational Institutions.

You are kindly requested to submit the revised Budget for 2008 to the Commission, with copies to the Treasury, on or before the 8th February, 2008, in the formats sent to you with Finance Circular Letter No. 10/2007.

A copy of National Budget Circular No. 137 is annexed for your information.

Prof. S. V. D. G. Samaranayake

Chairman

Cc:

1. Chairman/UGC

2. Vice-Chairman/UGC

3. Secretary/UGC

4. Financial Controller

5. Director/IDD/UGC

6. Registrars of Universities

7. Bursars of Universities

8. SAR/AR/ of Institutes/Campuses

9. SAB/AB/ of Institutes/Campuses

10. Accountant/UGC

11. Chief Internal Auditor/UGC

12. Snr. Asst. Accountant/UGC

13. Snr. Asst. Secretary/Supplies & Administration/UGC

14. Auditor General

15. Govt. Audit Superintendent/UGC

16. Govt. Audit Superintendent/Universitiesp/
