Big Budget

Sri Lanka hopes to contain its 2006’s budget deficit at 8.2 percent of gross national product (GNP) while keeping total expenses within Rs. 1003 billion. Sri Lanka hopes to contain its 2006’s budget deficit at 8.2 percent of gross national product (GNP) while keeping total expenses within Rs. 1003 billion. Government spending is estimated at Rs. 1003 billion, with capital expenditure expected to make up Rs. 520 billion of the total bill.

The higher capital expenditure bill accounts for tsunami reconstruction.

Cabinet Spokesperson and Health Minister Nimal Siripala de Silva on Friday told journalists in Colombo that the government would break tradition and table its 2006 appropriation bill on October 4 in parliament.

The ceremonial budget speech delivered by the finance minister meanwhile has been scheduled for November 10.

Traditionally the budget is presented before the appropriation bill is issued.

De Silva said the cabinet of ministers this week approved the decision to table the appropriation bill ahead of the budget speech.

The minister also said the government was confident of “pushing through” the 2006 budget, with the support of its allies in parliament.

The 2006 budget is expected to offer a number of concessions, de Sivla said, but refrained from detailing the proposal.

Sri Lanka’s government revised its 2005 budget deficit target in August to 8.5 percent of gross domestic product (GDP) from a forecasted 7.6 percent on account of a higher oil bill and tsunami rebuilding.

Summary of
Government Fiscal Operations

2004

2004

2005

Approved

Estimates

Provisional

Approved

Estimates

Item

Rs. Billion

Total Revenue

331.57

331.47

389.49

– Tax Revenue

301.00

281.55

351.11

– Non-tax Revenue

40.29

29.92

38.37

– Revenue
Adjustment

-9.72


Expenditure and lending
minus repayments

469.47

476.90

560.63

– Current

357.67

389.67

418.98

– capital and net
lending

111.80

87.22

141.65

– o/w Public
Investment

107.52

97.6

144.44

Current Account
surplus/deficit(-)

-26.10

-78.20

-29.49

Primary Account
surplus/deficit(-)

-16.99

-45.65

-43.14

Overall deficit before
grants

-137.90

-165.43

-171.14

Financing

137.90

165.43

171.14

– Foreign Loans

49.89

37.07

48.68

– Foreign Grants

10.00

8.68

10.20

– Domestic
Borrowing

65.00

117.24

104.76

– Domestic Grants




– Privatization
Proceeds

13.00

2.43

7.50

AS
a percentage of GDP

Total Revenue

16.4

15.4

17.1

Expenditure and lending
minus repayments

23.2

23.5

24.6

– Current

17.6

19.2

18.4

– capital and net
lending

5.5

4.3

6.3

Current Account
surplus/deficit(-)

-1.3

-3.9

-1.3

Primary Account
surplus/deficit(-)

-0.8

-2.2

-1.9

Overall deficit before
grants

-6.8

-8.2

-7.6

Source :
Central Bank

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