First Budget of President’s second term:

Focus on growth

Rasika Somarathna

*Number of relief measures

* Poverty, inflation to be reduced

*Priority for development

President Mahinda Rajapaksa will today present a development and relief oriented budget in Parliament, in his capacity as the Finance Minister, Government sources said. The budget proposals today are expected to contain a host of relief measures. It is expected to give prominence to development. This is the first budget to be presented since President Mahinda Rajapaksa assumed office for a second term on November 19.

Deputy Economic Development Minister Ranjith Siyambalapitiya yesterday said that the budget will lay the foundation to make Sri Lanka a developed nation.

Prime Minister DM Jayaratne during a public event in Kahawatte, Gampola yesterday said that one of the main areas the budget proposals would lay focus on is rural development.

The proposals would contain enhanced assistance to the development of rural industries and agriculture, he added. The Government is expected to reduce the budget deficit to seven percent of the GDP.

It is also expected to reduce the debt to GDP ratio at 80 percent. It was 105 percent in 2005.

According to Finance Ministry sources, the budget has also taken into consideration public proposals among others.

Views expressed during progress review meetings held in the nine provinces too have been taken into consideration. It is expected that a simplified tax structure would be introduced. Reducing poverty, inflation and unemployment are some of the main objectives.

Reducing the Cost of Living, improving the public and private sector, infrastructure development, providing relief to people affected by the conflict, further progress in the urban sector are the other main areas of focus.

The total expenditure for 2011 is estimated to be over Rs 1.08 trillion.