2013 Budget passed, aims to cut deficit to 35-year low

Reuters: Parliament on Saturday passed the 2013 Budget by a 101-vote majority, giving the nod to reduce its fiscal deficit to a 35-year low of 5.8% of Gross Domestic Product (GDP) and achieve an economic growth of 7.5% in 2013.

The Budget was passed with 158 votes for against 57 in a 225-member Legislature, in which President Mahinda Rajapaksa’s ruling party has over a two-thirds majority.

The Government aims to cut the 2013 fiscal deficit to an ambitious 5.8% of the GDP, its lowest since 1978, from 6.2% this year, the level agreed with the International Monetary Fund (IMF) under the terms of a $ 2.6 billion loan, which was fully disbursed in July. The Government and the IMF are in preliminary discussion for another loan after the completion of the loan, officials have said.

Sri Lanka is targeting 7.5% economic growth next year from this year’s revised 6.8%.