FULL SPEECH: President delivers budget proposals for 2013

The President delivered the budget speech for the year 2013 earlier today (November 8) in parliament. The Cabinet of Ministers had approved the US$ 19.5 billion Appropriation Bill 2013 at the Cabinet meeting held on Wednesday September 26.

Some of the highlights of the budget proposals included the proposal of maintaining a high import taxation policy on milk powder to strengthen local farmers, offering domestic dairy farmers a stronger guaranteed price of Rs.50 per litre of milk.

In view of promoting sporting tourism all vehicles used for racing sports will be exempt from import tax, President said presenting the 2013 Budget. The President also proposed to increase fees on revenue license for vehicles from next year. 

Selling land to foreigners will be completely prohibited from 2013 but will be granted on a lease system.

Government spending on the free education sector will not be undermined in any manner, the President assured in his Budget speech while proposing that government education expenditure for 2013 be increased by 15% in comparison to 2012.

The President proposed that Rs.306 billion be allocated for the Education sector which amounts to around 4.1% of the GDP.

Furthermore, import tax on liquor is to be increased by 25% while the allowance of the Public sector employees will be increased by Rs. 1500.