Public deficit down by 43 percent

Revenues driven up by transfers of $347 million from Telecoms Ministry

The public deficit in the first quarter of 2012 stood at $668 million, down by 43 percent from the first quarter of last year. The deficit made up 22 percent of total expenditures.

Expenditures grew by 3.4 percent to $3 billion. Treasury spending on EDL in the same period rose by 62 percent, to $540 million.
Revenues were up by 29 percent to $2.3 billion. Tax revenues increased by 12.8 percent, while non-tax revenues grew by around 168 percent. This significant growth was driven by transfers of $347 million from the Ministry of Telecommunications, which were not counted in first quarter of last year.

In a bid to increase treasury revenues, the Minister of Finance, Mohamad Safadi, proposed a number of tax increases, including raising VAT to 12 percent. The proposals were criticized by business leaders who argued that it is not suitable in the current situation to raise taxes.

Reported by Hanadi Chami