Government hopes to spend Rs. 438 bn next year

Government expenditure is estimated to go up to Rs. 438 bn in 2005, from Rs. 353 bn this year, Finance Minister, Dr. Sarath Amunugama told parliament. Government expenditure is estimated to go up to Rs. 438 bn in 2005, from Rs. 353 bn this year, Finance Minister, Dr. Sarath Amunugama told parliament. Presenting government finances for next year ahead of the November 18 budget, Amunugama said pledged to trim the deficit to 7.5 percent of GDP next from an estimated 8.0 percent this year.

However, critics point out that the government may miss this year’s deficit target as the Treasury is still dishing out subsidies for fuel, wheat and fertilizer.

The overall limit for foreign and domestic have been capped at Rs. 457 bn for next year.

The defence budget has been pruned down to Rs. 56 bn next year, from Rs. 52 bn this year, Amunugama said Tuesday.

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