Lebanon’s budget deficit up to August 2016 rose to 26.88 percent of spending from 23.14 percent in the same period of 2015, the Finance Ministry said Thursday. According to the Finance Ministry tables, the deficit was caused by a rise in government expenditures in the first eight months of this year.
Total government revenues reached LL10.365 trillion, an increase of 4.13 percent, while expenditures stood at LL14.177 trillion, registering an increase of 9.45 percent in the reporting period. The tables showed a slight increase in customs receivables and value added tax up to August of this year.
Telecom revenues, including cellular and landline networks, rose by 5.49 percent to reach LL1.202 trillion. The telecom sector is the third source of government revenues after customs and VAT.
Government expenditures were generally higher with the exception of the allocations to state-owned Electricite du Liban. Allocations to EDL in the first eight months of this year fell by 33.80 percent to reach LL785.7 billion.
The drop in EDL’s deficit is mainly due to the fall in oil prices in international markets.
Lebanon has yet to pass the government budget.
However, observers do not expect the new government to discuss and approve a new budget because its main task will be the preparation of parliamentary elections in less than six months.
Business leaders and investors said that one of the main duties of the new government is to pass the budget as soon as possible to send a positive signal to the market.
It remains to be seen if the new finance minister will call for more taxes to boost government revenues and carry out the necessary reforms.
