Budget deficit lowest in 18 yrs
Nov 25, 2010 7:00:00 PM - aussieindolanka.com
The 2011 Budget has been designed with long-term goals to maintain low inflation, encourage investments, reduce tax distortion, enhance private - public sector partnerships to promote economic growth, a group of intellectuals said yesterday.
Central Bank Economic Research Director K D Ranasinghe said Sri Lanka today was enjoying the dividends of peace in the form of economic gains and the 2011 budget proposals in this backdrop has been designed to sustain the momentum and build on the achievements.
“Sri Lanka’s inflation today has come down to 5-6 percent, foreign reserves has grown to over US $ 07 billion, unemployment rate is less than 05 percent. The budget proposals are intended at providing the necessary impetus to build on the above achievements,” he noted.
He said that Sri Lanka was also targeting the lowest budget deficit(6.8 percent) in 18 years to supplement growth.
Ranasinghe said several taxes were removed, making way for a less complicated and stable tax structure.