Budget 2012 today

November 20, 2011, 9:30 pm , The Island.

President Mahinda Rajapaksa in his capacity as Minister of Finance will present the Budget 2012 to Parliament today at 1.50 pm.

The country has, according to government sources, made significant progress in fiscal discipline this year and therefore is likely to meet the deficit target of 6.8 percent of the GDP. However, public debt to cover the deficit has ballooned from Rs. 433.7 billion estimated for the whole year to Rs. 515 billion in new loans by end August.

In 2012, the deficit has to be reduced further to 6.2 percent according to the government’s own fiscal plans and in keeping with conditions attached to the US$ 2.6 billion IMF standby facility.

The second reading stage debate on the budget proposals is scheduled to commence tomorrow (22) at 9.30 am and go on till 5.30 pm for a period of seven days upto Nov. 30. The Second Reading stage vote would be taken at 5.00 on Nov. 30.

The Third Reading stage of the appropriation bill will commence on Dec. 1 and go on till Dec. 21 and the votes of all ministries would be taken up for debate. The final vote on budget 2012 is scheduled to be taken at 5.00 pm on Dec. 21.