Vasant Bharath made that disclosure Tuesday in the Senate on behalf of the Ministry of Finance. He was answering a question on financing of the project.
Bharath explained that the state will provide money for the highway construction on a needs basis with annual allocations based on what is required to complete work during that period. "To this end, Government agreed to provide initial funding of $1.5 billion," he said.
Bharath said Government chose to finance the project without borrowing because all the money won't be needed right away.
"Additionally, borrowing $7.5 billion on the local market would have adversely affected this country's public debt levels and at the time, could not have been accommodated under the borrowing limits as outlined in the Guarantee of Loans Companies Act," he explained.
He said the Treasury Deposits can be utilised "under the authority of the Minister of Finance at any time. At any time, an advance is made from these deposits, are recoverable within a period not exceeding 12 months after the close of the financial year."
Bharath said Government chose to finance the project without borrowing because all the money won't be needed right away.
"Additionally, borrowing $7.5 billion on the local market would have adversely affected this country's public debt levels and at the time, could not have been accommodated under the borrowing limits as outlined in the Guarantee of Loans Companies Act," he explained.
He said the Treasury Deposits can be utilised "under the authority of the Minister of Finance at any time. At any time, an advance is made from these deposits, are recoverable within a period not exceeding 12 months after the close of the financial year."
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