Oct 09, Colombo: Sri Lanka Parliament a short while ago approved the government's Appropriation Bill for 2009 seeking 980 billion rupees. The Bill projects expenditure estimates before the annual budget in November.

According to sources, this budget is reported to shoulder increased defense expenses of 177 billion rupees (US$ 1.6 billion), an increase of 6 percent from this year’s expenses of 166.4 billion.

Defense spending is a priority for the government along with the development work in liberated areas. Political observers say an increase in defense expenses is necessary to wipe out the Tiger terror expressing hope that an end to the war will bring foreign investment and economic development in the country.

The rest of the funds approved is expected to be used in Government's development plans in par with the political manifesto, Mahinda Chinthana. The budget deficit is expected to remain at 6 – 7 percent followed by an increase of foreign borrowings to 850 billion rupees.

The government will present the 2009 budget in parliament on November 6th.