The Appropriation Bill for the financial year 2012 will be presented to Parliament on Tuesday.
The Bill has been prepared after the President, who is also the Minister of Finance, and officials of the ministry consulted all other ministries and other stakeholders with a view to formulating a realistic Budget to divert resources for priority areas identified in the “Mahinda Chintana”, the Government announced recently.
Priority has been given to ongoing development activities before allocating resources for new projects.
The estimates have been prepared with the aim of containing the budget deficit at 6.2 per cent of the GDP in order to ensure that economic development is maintained at eight per cent and the rate of annual inflation at 6 to 7 per cent.
The total estimated expenditure for 2012 is to be Rs.2,220 billion necessitating an increase in recurrent expenditure from Rs.1,029 billion in 2011 to Rs. 1,111 billion.
The total expected income is Rs. 1,115 billion while public investment has increased from Rs. 453 billion in 2011 to Rs. 541 billion in 2012 in order to maintain the momentum in the growth rate at eight per cent.