Colombo: Sri Lankan President Mahinda Rajapakse today presented the country's biggest ever war budget, asking Parliament for a whopping 20 per cent increase in the nation's defence spending amid intensified clashes between government forces and the LTTE that left 36 people dead.

Defence spending would rise to Rs 166.4 billion (around $1.5 billion) during 2008 from an estimated Rs 139.4 billion rupees ($1.3 billion) in 2007,according to the budget estimates placed before Parliament. The military's capital spending is a reflection of funds required for purchase of weapons and other equipment for the army, navy, the air force and police.

During his budget speech, Rajapaksa, who is also the Defence and Finance minister, asked Parliament for the increase saying: "We have no alternative but to completely eradicate terrorism. Otherwise there can be no political solution."

Rajapaksa in his nearly two-hour speech broadcast on national television estimated the total government expenditure for next year at Rs 1 trillion ($9.5 billion), far in excess of expected revenues of Rs 751 billion rupees ($6.8 billion).

Meanwhile, troops retaliating to "repeated" LTTE attacks in the northern Muhamalai forward defence lines in Jaffna killed 30 Tiger cadres, the army said. The confrontation erupted around 5.30 am this morning.

Source : PTI