Sri Lanka spending to be upped 15-pct in 2012: preliminary data

Oct 14, 2011 (LBO) – Sri Lanka plans to spend 1,640 billion rupees in capital and current expenditure in 2012 up 15.5 percent from a year earlier, preliminary data released by the finance ministry showed. It leaves the state with a deficit of 525 billion rupees.

However government spokesmen had said earlier that in 2012 the deficit will be kept at 6.2 percent of gross domestic product down from 6.8 percent in 2011.

Nominal GDP for 2012 is estimated at around 7,400 billion rupees with about 8 percent real economic growth and 7.0 percent inflation measured by the GDP deflator.

At 6.2 percent of GDP the budget deficit works out to around 460 billion rupees. The ‘second reading’ of the budget usually contains new revenue proposals to trim the deficit.

The state will spend 1,100 billion ropes in recurrent activities, up 8.2 percent and 540 billion on capital expenditure, up 34 percent from last year, data published on the finance ministry’s website said.

The data released ahead of the appropriation bill, or the first stage of the budget may differ in presentation the final budget scheduled for November 21, called the ‘second reading’ of the budget.

The numbers differ partly due