The proposed budget has considered the proposals obtained from the public as well as from the public representatives and the progress review meetings held in all provinces of the country.
The 2011 budget is the first ever budget that addresses the problems of the entire country after the conclusion of the war.
The Rs. 2,500 wage hike promised by President Mahinda Rajapaksa for the public sector will be allocated in two stages of Rs. 1,300 and Rs. 1,200. The President will present the 2011 budget to parliament on Monday in his capacity as Finance Minister.
Government sources say there will also be a reduction in interest rates. The 2011 budget is expected to be the first step in a three-year development strategy for 2011-2013.
The budget will also target a reduction in the deficit to 8% of GDP next year and 5% by 2012. The debt ratio will be reduced to 70% of the GDP from the current 80%.
The International Monetary Fund (IMF) last month recommended Sri Lanka to take forceful action to reduce the budget deficit and public debt.
The proposals are also expected to include the setting up of an Employees' Pension Fund for the benefit of all private and public sector employees who are not covered by any form of pension scheme.
The government will also simplify the tax system while broadening the tax base and improving tax administration and collection.
The Sri Lankan government in October tabled the 2011 Appropriation Bill in the parliament for debate. The total expenditure for 2011 is estimated to be over 1.08 trillion rupees. Nearly 20 percent of the expenditure is for defence sector which is estimated to be Rs 215.2 billion.
The second reading of budget debate will be held from November 22nd to 27th while the third reading is scheduled to be held from November 29 to December 20.
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