Budget 2012: Govt. renews promise of salary increase, 300,000 jobs

October 10, 2011, 9:39 pm

by Zacki Jabbar

The 2012 budget to be presented in parliament on November 21, would grant salary increases and create 300,000 public sector jobs, the government claimed.

Media Minister Keheliya Rambukwella, told the weekly Cabinet press briefing in Colombo last week, that the elusive salary increase will become a reality on November 21, on which date the process of creating 300,000 employment opportunities would also be set in motion.

The Appropriation Bill which was approved by the Cabinet on Wednesday, will be submitted to parliament on November 18, he said.

Rambukwella said that the Budget Estimates for 2012 were being prepared with a view to containing the deficit at 6.2 percent of GDP, ensure economic growth was maintained at 8 percent and the rate of annual inflation at 6 to 7 percent.

Expenditure, he observed, was estimated at Rs. 2,220 billion, necessitating, an increase in Recurrent Expenditure from Rs. 1,029 billion in 2011 to Rs. 1109 billion in 2012 and Capital Expenditure from Rs.938 billion to Rs. 1,111 billion. The total revenue expected was Rs. 1,115 billion, with an increase in Public Investment from Rs.453 billion in 2011 to Rs.541 billion in 2012 being targeted, Rambukwella noted.

In preparing the Appropriation Bill, the President, in his capacity as Finance Minister and the General Treasury had consulted each line Ministry and other stakeholders, with a view to diverting resources for priority areas identified in the ‘Mahinda Chinthana’ and phased out in the Medium Term Expenditure Frame Work 2012 – 2014, he said adding that the focus would be on completing ongoing development activities, before allocating resources for new projects.