The government is aiming to reduce the budget deficit at 6.2 percent of GDP while maintaining an 8 percent economic growth and an annual inflation between 6 and 7 percent in the 2012 budget.

The government has given priority to complete the ongoing development activities, before allocating resources for new projects in the budget proposals for 2012.

The forthcoming budget will provide salary increases to the public servants and 300,000 employment opportunities in the Public Service, the Minister of Mass Media and Information Keheliya Rambukwella told media at the Cabinet press briefing on Friday.

The cabinet has on Wednesday approved the government to present its US$ 20 billion budget for 2012 in the parliament for debate on November 21.

The cabinet has granted approval to a proposal submitted by the President in his capacity as the Finance Minister to present the Appropriation Bill for the Financial Year 2012 in parliament after publishing it in the Government Gazette.

The first reading of the Appropriation Bill will be on Oct 18th and the presentation of the Budget in Parliament (2nd Reading) will be on Nov 21, the cabinet has announced.

During the preparation of the budget the President and the Treasury met with officials of various ministries and leaders and representatives of various industrial sectors in the country soliciting their views and suggestions.