11. The Budget for 2010 is a transitional budget reflecting expenditure under the previously functioning ministries adjusted to the new ministries and is a stepping stone in making provision to prepare the work plans towards the 2011 budget, which is scheduled to be presented to the Parliament in November, 2010. Back to Contents Research & Development Unit Summary Of the Budget - 2010 Cont… Key Highlights of the 2010 Budget ( Rs. Bn.) 2009 2010 Total Revenue and Grants 725.57 840.99 Total Revenue 699.64 817.79 Tax Revenue 618.93 729.01 Non Tax Revenue 80.71 88.77 Grants 25.92 23.20 Total Expenditure 1,201.93 1,279.82 Recurrent 879.58 928.34 Public Investment 330.45 361.48 Other (8.10) (10.0) Revenue Surplus(+)/Deficit (-) (179.93) (110.55) Budget Deficit (476.36) (438.84) Total Financing 476.36 438.84 Total Foreign Financing 83.89 123.50 Net Foreign Borrowings 26.48 93.50 Gross Concessional Foreign Borrowings 147.03 172.50 Debt Repayments 110.29 71.00 Foreign Commercial 57.41 30.00 Total Domestic Financing 392.48 315.34 Non‐bank Borrowings 196.53 235.84 Foreign Investments in T Bills / Bonds 146.92 34.50 Bank Borrowings 49.03 45.00 Revenue/GDP (%) 14.5 14.9 Expenditure/GDP (%) 24.9 23.3 Revenue Surplus (+)/ Deficit (-)/ GDP (%) (3.7) (2.0) Budget Deficit/ GDP (%) (Excluding Grants) (9.9) (8.0)
12. Grants Rs.23.20bn Other (Rs.10bn) Back to Contents Research & Development Unit Cont… Total Revenue & Grants Rs. 840.99 bn Total Expenditure Rs. 1,279.82 bn Budget Deficit Rs. (438.84) bn Revenue Composition – Rs. 840.99 Taxes on Goods & Services Rs.423.44bn Income Tax Rs.160.34bn Taxes on External Trade Rs.145.23bn Non Tax Revenue Rs.88.77bn Expenditure Composition – Rs. 1,279.82 Public Investment Rs.361.48bn Other Goods & Services Rs.91.54bn Subsidies & Transfers Rs. 202.89bn Interest Rs. 337.21bn Salaries & Wages Rs.296.71bn Key Highlights of the 2010 Budget (Cont…)
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19. Back to Contents Research & Development Unit Recent Price Changes Commodity Increased by (Rs.) Wheat flour 10.50 ( per Kg) 450g loaf of bread 4.00 Packet of 400g powdered milk 19.00 Packet of 1 kg powdered milk 48.00 Local & foreign liquor 50 ( per litre) Cigarette 1.00 Commodity Decreased by (Rs.) Shell Gas (12.5 kg) 117.00 Laugfs Gas (12.5 kg) 85.00
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24. The information contained in this presentation has been drawn from sources that we believe to be reliable. However, while we have taken reasonable care to maintain accuracy/completeness of the information, it should be noted that Commercial Bank of Ceylon PLC and/or its employees should not be held responsible, for providing the information or for losses or damages, financial or otherwise, suffered in consequence of using such information for whatever purpose. The views expressed in Economic Capsule are not necessarily those of the Management of Commercial Bank of Ceylon PLC Jeffrey David Sachs is an American economist and Director of the Earth Institute at Columbia University. One of the youngest economics professors in the history of Harvard University, Sachs became renowned for implementing economic shock therapy throughout the developing world and in Eastern Europe, and subsequently for his work on the challenges of economic development, environmental sustainability, poverty alleviation, debt cancellation, and globalization. The truth of good economic doctoring is to know the general principles, and to really know the specifics to understand the context, and also, to understand that an economy may need some tender loving care, not just the so-called hard truths, if it's going to get by. Jeffrey Sachs