Lebanon’s budget gap widens 60% y/y to USD 3.3bn at end-September 2013

By bne IntelliNews December 2, 2013

Lebanon's budget gap (including Treasury transactions) widened 60% y/y to LBP 5tn (USD 3.3bn) in the first nine months of the year on falling revenue (both tax and non-tax) and rising spending, mainly on salaries and debt servicing, the finance ministry said in a statement. The budget deficit will likely reach LBP 5.5tn by end-2013 and might expand further in 2014 if no measures were taken to boost revenue, according to caretaker finance minister Mohammed Safadi.

The deficit equalled 31.9% of total spending in January-September, up from 22.3% the previous year.

Total budget proceeds dropped 2.2% y/y to LBP 10.6tn, whereas spending rose 11.6% to LBP 15.6tn. The budget recorded a LBP 824bn primary deficit over the period compared with a LBP 978.6tn primary surplus the year before.

Tax proceeds fell 1.5% y/y to LBP 7.8tn mainly on lower VAT and custom fees. The latter shrank 3.5% y/y to LBP 1.62tn in January-September on falling energy imports. A weak tourism activity and related consumption have also weighed on VAT receipts that edged up just 0.1% y/y to LBP 2.48tn over the period.

Non-tax proceeds fell 10.8% y/y to LBP 2.2tn mainly on shrinking telecom receipts and subdued real estate deals. Telecom receipts shrank 15.2% to LBP 1.4tn in January-September.

Debt servicing rose 1.5% y/y to LBP 3.9tn over the period on higher interest payments on foreign debt (up 6.4% y/y to LBP 1.49tn). Interest on the domestic debt fell 1.3% y/y to LBP 2.44tn. Transfers to loss-making Electircite du Liban (EDL) dropped 3% y/y to LBP 2.54tn on lower fuel prices.

Related Articles

Turkish Airlines' share price falls further after UK follows US with electronics flight ban

The share price of Turkish Airlines (THY) was down 2.88% by the end of trading on March 21 after the UK joined the US in banning electronic devices larger than smartphones in hand luggage on flights ... more

Turkish Airlines' share price slides after US bans electronic devices on flights

Flag carrier Turkish Airlines (THY) saw its share price fall 1.69% on March 21 after confirming it is among the nine airlines affected by a US cabin baggage ban on large electronic devices on flights ... more

Iran, Syria sign raft of memoranda and deals

Following the purge of foreign-backed rebels in the devastated Syrian city of Aleppo by Iranian, Lebanese and Russian forces, Damascus’s prime minister Imad Khamis was in Tehran to sign five ... more

Register here to continue reading this article and 2 more for free or purchase 12 months full website access including the bne Magazine for just $119/year.

Already a subscriber or registered - click here to recover access.

If you a IntelliNews Pro user - click here to login.

Thank you. Please complete your registration by confirming your email address.
A confirmation email has been sent to the email address you provided.

To continue viewing our content you need to complete the registration process.

Please look for an email that was sent to with the subject line "Confirmation bne IntelliNews access". This email will have instructions on how to complete registration process. Please check in your "Junk" folder in case this communication was misdirected in your email system.

Already a subscriber or registered - click here to recover access.

If you a IntelliNews Pro user - click here to login.

If you have any questions please contact us at sales@intellinews.com

Subscribe to bne IntelliNews website and magazine

Subscribe to bne IntelliNews website and monthly magazine, the leading source of business, economic and financial news and commentary in emerging markets.

Your subscription includes:
  • Full access to the bne content daily news and features on the website
  • Newsletters direct to your mailbox
  • Print and digital subscription to the monthly bne magazine
  • Digital subscription to the weekly bne newspaper

Already a subscriber or registered - click here to recover access.

If you a IntelliNews Pro user - click here to login.

bne IntelliNews
$119 per year

All prices are in US dollars net of applicable taxes.

If you have any questions please contact us at sales@intellinews.com

Register for free to read bne IntelliNews Magazine. You'll receive a free digital subscription.

Already a subscriber or registered - click here to recover access.

If you a IntelliNews Pro user - click here to login.

Thank you. Please complete your registration by confirming your email address.
A confirmation email has been sent to the email address you provided.

IntelliNews Pro offers daily news updates delivered to your inbox and in-depth data reports.
Get the emerging markets newswire that financial professionals trust.

"No day starts for my team without IntelliNews Pro" — UBS

Thank-you for requesting an IntelliNews Pro trial. Our team will be in contact with you shortly.

Dismiss