Sri Lanka outlines spending plans for 2010

June 08, 2010 (LBO) – Sri Lanka will spend at least 202 billion rupees on defence, 87.8 billion rupees on roads, 53 billion rupees on health, 26.2 billion rupees on ports and 25.1 billion rupees on water supply this year, a bill submitted to parliament said. In 2009 Sri Lanka spent 188.6 billion rupees, according to budget out-turn numbers released by the Central Bank.

Sri Lanka submits an ‘appropriation bill’ ahead of the presentation of the annual budget, setting out planned expenditures under various ministries, and a ceiling on borrowing.

The budget, which is usually presented in November of a given year, has been delayed to the end of June this year on account of elections in the first half of the year spurning the practice of going for ‘election budgets’ with vote-buying gimmicks.

The appropriation bill said the government planned to spend 974.7 billion rupees in 2010 and borrow 980 billion rupees.

Revised numbers released by the finance ministry showed that last year the government spent 1,201.9 billion rupees, up from a planned 1,091.5 billion as the deficit expanded above a revised budget prepared in May.

The ‘appropriation bill’ is considered the ‘first reading’ of the budget under the country’s lawmaking process, but direct