Oct 07, 2011 (LBO) – Sri Lanka’s 2012 budget will be presented on November 21 with estimates being prepared with a deficit of 6.2 percent of gross domestic product and inflation at 6-7 percent. In the budgeting process, “priority has been given for the completion of ongoing development activities before allocating resources for new projects,” it said. The budgeting process gets under way with an ‘appropriation bill’, setting out spending allocations for various ministries and foreign and local borrowing limits for next year, being presented to parliament on October 18, 2011.
The appropriation bill is considered the ‘first reading of the budget’ with the budget proper with itemized expenses and measures to bridge the deficit including tax changes, considered the ‘second reading’ of the bill, being presented in parliament on November 21.
Government spokesman and media minister Keheliya Rambukwella said the Cabinet of ministers had approved the appropriation bill submitted by President Mahinda Rajapaksa as finance minister under the 2012 – 2014 medium term expenditure framework.
“Budget estimates for 2012 are to be prepared with the aim of containing the budget deficit at 6.2 percent