The fiscal deficit dropped to nine percent of GDP, compared to ten percent of GDP in 2008.

The primary surplus, which excludes debt service, increased 80 percent to $1.1 billion, mainly driven by an increase in revenues.

The government’s revenues increased 23 percent to $8.5 billion, fuelled by a substantial increase in income from VAT, customs, and telecommunication proceeds.

Mikhael said that the improvement in the overall economic activity in the country, contributed to the increase in public revenues.

Tax revenues rose 25 percent to $5.9 billion. Revenues from customs, which include excise taxes on fuel and cars, increased the most soaring by 68 percent to $1.7 billion in 2009 compared to 2008. Revenues from VAT also increased nearly 12 percent to $1.9 billion in 2009.

Mikhael said the increase in VAT revenues also reflects “the better collection process of VAT taxes by the government.”

Non-tax revenues rose 17.5 percent to $2 billion as the telecom sector remained the top contributor to the budget. It increased 18.5 percent to $1.4 billion.

Mikhaeal said that despite the good income from telecom services, the sector should be privatized in the future to improve the telecom services and lower prices.

He said privatization will “boost trading activity on the Beirut Stock Exchange (BSE), and enhance activity in other sectors related to the telecom sector including the Internet and software.”

In 2009, total expenditures reached $11.4 billion, up from $9.95 billion in 2008, driven by an increase in debt service and wages.

Spending on Électricité du Liban (EDL), reached $1.5 billion in 2009, down $114 million.. The decrease is due to the falling average oil prices through 2009.

He said one of the restructuring steps for EDL could be “increasing tariffs (price per kWh) which are still low and set based on an oil barrel price of $30.”