President Mahinda Rajapaksa in his capacity as Finance and Planning Minister presented the budget for 2012 to Parliament today (Nov 21). This is the 65th budget of Sri Lanka since independence and 7th budget presented by the President.

It has a series of proposals to help uplift the socio-economic conditions of the people and the development of the country. It will specially focus on strengthening free education, health services and agriculture. It was prepared with widespread consultation with people of the country.

President Rajapaksa stated that 2012 will record an economic growth of 8%. By maintaining this, the goal of reaching a per-capita income of US$ 4000 will be realized by 2016.

With the implementation of projects such as “Divi Neguma”, inflation has decreased to 5%. The country is self-sufficient in rice production. The rate of unemployment has declined from 8% to 5%, while the population below the poverty line has declined from 15.6% to 8.9%.

The President noted that the Budget 2011 increased the minimum salary of public servants by Rs. 1,200. Due to the removal of salary anomalies, public servants obtained a real increase by Rs. 1500 to Rs. 3000. This budget will give a salary increase of 10% of the basic salary to all public servants and those in the defence sector.

He called up on all members of political parties to eschew personal interests, and to act united on behalf of the country. He added that it was possible to take the country’s economy forward in this manner because the UPFA Government has functioned as a united political party.

Budget Speech -2012 by President Mahinda Rajapaksa