Higher public deficit

Primary balance in the negative zone

The public deficit in the first quarter of the year totaled $766 million, up by 17 percent year-on-year. According to a report by the Ministry of Finance, the deficit represented 26 percent of public spending in the first quarter, up from a deficit that represented 22 percent of spending in the first quarter of 2012.

The primary balance, the difference between revenues and spending excluding the cost of debt servicing, fell from a surplus of $178 million to a deficit of some $5 million.

The deficit is attributed to a five percent drop in revenues and a three percent increase in primary spending, excluding debt servicing, to $2.24 billion.

Tax income fell by 5.6 percent year-on-year, mainly affected by an 8.8 percent drop in Value-Added Tax proceeds, which totaled $535 million. Customs proceeds were almost flat throughout the reporting period, standing at $355 million. Non-tax revenue, including $360 million in uncollected Telecommunications revenues, also fell by 6.4 percent.

Revenues from Treasury transactions grew by 16 percent, while Treasury payments were up by six percent.

Allocations to the Electricité du Liban (EDL) increased by 5.7 percent to $574 million.