Fiscal deficit up at end-September 2012

Treasury expenditures triple year-on-year

The total fiscal balance recorded a deficit of $2 billion in the first nine months of 2012, compared to a lower deficit of $1.4 billion during the same period in 2011. According to the Ministry of Finance, the primary surplus over this period dropped to $660 million, down by more than fifty percent year-on-year.

Government expenditures stood at $9.2 billion, up from $8.3 billion at end-September 2011. 2012 saw increased spending due to higher budget advances, as well as an rise in current expenditures, mainly transfers to the power production company Electricité du Liban (EDL). Transfer to the EDL grew to $1.7 billion from $1.1 billion for the corresponding period in 2011. Treasury expenditures, which mainly include advances to ministries and public institutions, rose to $1.4 billion from $500 million in the previous year.

Total revenues reached $7.2 billion including projected transfers from the Ministry of Telecommunications. Excluding these transfers, revenues would be around $6.1 billion, slightly up from the $5.8 billion actual revenues of the corresponding 2011 period. This rise was mostly due to an increase in tax revenues, mainly from income taxes of individuals and corporations.