The forecast of a Rs13.4bn deficit in FY12 has been reduced to Rs8.5bn mainly due to lower investments than initially planned. In FY13, with a growth rate of 4%, the Minister manages to post a contained budget deficit of 2.2%.
GoM expenses are projected to increase from Rs83bn to Rs92bn in FY13. This is mainly due to a 19% increase in compensation of employees post PRB increases.
Although public sector debt as a percentage of GDP is expected to decrease from 54.2% in FY12 to 53.7% in FY13, the debt level in absolute terms will increase by 10%.