Annual Report 2010 - Ministry of Finance and Planning

1 | DEVELOPMENT PERSPECTIVESelectricity and quality housing.Under this provincial developmentprogramme 1,406 rural roads havebeen improved and 8 bridges havebeen completed. In addition tothat, 924 irrigation projects and77 agriculture supportive projectshave been completed. Further,82 rural water supply schemes,50 community developmentprogrammes and 136 educationaldevelopment programmes havebeen implemented in 2010. Thegovernment has spent Rs. 22,240million for these developmentactivities. With enhanced regionalinfrastructure facilities, rural peoplecan actively participate in economicdevelopment in the country, whichreduce the income disparities amongthe region.Those regional development initiativeshave not only increased the shareof GDP of provinces but have alsoresulted in reducing income disparities.The provincial share of GDP of theWestern Province has declined by 3.3percent in 2009 compared to 2007,while the Central, Northern, Eastern,North Western, North Central and UvaProvinces have increased their shareof GDP in 2009 compared to 2007.The average household income ofprovinces increased during the periodand income disparities have alsodeclined between the provinces.Except Southern and SabaragamuwaProvinces, the other Provinces haveincreased their share of the GDP. Thedecrease of the share of GDP of theWestern Province is not due to thereduction of production in the WesternProvince, but due to disproportionatedevelopment of other provinces. Newdevelopment policies have helpedto develop some provinces fasterthan Western Province. Especially, inUva, Sabaragamuwa, North Centraland North Western Provinces, annualhousehold income has increased byaround Rs. 10,000 in 2009 comparedto 2007. This is as a result of thevillage development programmesTable: 1.53 > Gini Coefficient of Household Income and Per Capita Income - 2006/07, 2009/102006/07 2009/10 2006/07 2009/10Sector / ProvinceGini Coefficient ofHousehold IncomeGini Coefficient ofHousehold IncomeGini Coefficient of Percapita IncomeGini Coefficient of Percapita IncomeSri Lanka 0.49 0.47 0.49 0.46Urban 0.54 0.45 0.55 0.47Rural 0.46 0.46 0.46 0.46Estate 0.41 0.44 0.46 0.43Western 0.49 0.45 0.49 0.46Central 0.48 0.51 0.48 0.51Southern 0.44 0.43 0.43 0.42Northern N/A N/A N/A N/AEastern 0.44 0.33 0.42 0.30North Western 0.48 0.49 0.47 0.48North Central 0.44 0.39 0.44 0.39Uva 0.48 0.41 0.47 0.39Sabaragamuwa 0.48 0.50 0.47 0.48Source: Department of Senses and Statistics110