Lebanon's budget gap widens 68% y/y to USD 1.9bn in Jan-June 2013

By bne IntelliNews September 19, 2013

Lebanon's budget deficit (including Treasury transactions) expanded 68% y/y to LBP 2.862tn (USD 1.9bn) in the first six months of the year as revenue shrank and spending increased, daily Al-akhbar reported on Sept 19, citing a statement by the finance ministry.

Total revenue dropped 4.3% y/y to LBP 7.318tn, whereas spending rose 8.9% to LBP 10.18tn. The primary budget surplus, excluding the cost of debt servicing, plummeted to LBP 25bn from LBP 1.164tn a year earlier. Excluding debt servicing, spending rose 12.6% y/y to LBP 7.293bn in H1.

Caretaker finance minister Mohammed Safadi has recently warned that the budget deficit would reach LBP 5.5tn by end-2013 and might expand further in 2014 if no measures were taken to boost revenue.

Custom proceeds fell 2.6% y/y to LBP 1.065tn in January-June and VAT income dropped 3.3% to LBP 1.619tn on weak tourism activity.

A weak real estate activity also reduced non-tax income by 12% y/y to LBP 1.486tn over the period. 

Related Articles

Turkey dismisses idea of closing Qatar military base despite Arab nations' demands

Turkey is not at all considering the closure of its military base in Qatar despite the demand for its immediate termination ... more

Russia issues warning after US downs Syrian jet

Russia has warned the US-led coalition in Syria that its aircraft will be regarded as targets after the US shot down a Syrian military aircraft on June 18. “Any aircraft, including the ... more

Turkey's Erdogan slams Qatar blockade as “inhumane”

Turkish President Recep Tayyip Erdogan has criticised the isolation of Qatar by its Gulf neighbours as “inhumane and against Islamic values”. “It is as if a death sentence has been passed on ... more

Dismiss