Fiscal deficit, for the first 11 months of 2015, widened by 7.17% year-on-year (y-o-y) to $3.24B. This was attributed to the 5.63% yearly decrease in government revenues outpacing the 2.62% annual decline in fiscal expenditures.
However, during the same period, the total primary balance displayed a surplus of $1.06B compared to a slightly lower primary surplus of $1.03B by November 2014.
Total government revenues stood at $8.88B by November 2015, compared to a higher level of $9.41B by November 2014. Tax revenues slightly declined by 0.49% yearly to $6.42B. In details, VAT revenues (grasping a 31.02% share of tax receipts) dropped 4.01% y-o-y to $1.99B, while custom revenues (19.57% of tax receipts) added 1.27% to $1.26B, over the same period. As for telecom revenues, they went down by a mere 0.67% y-o-y to $1.17B after the Ministry of Telecommunication reduced internet and mobile tariffs in June 2014.
Total government expenditures declined from $12.43B by November 2014 to $12.12B in the same period of 2015. Regarding transfers to Electricite du Liban, they dropped by 41.68% annually to $1.06B, on the back of the continuous fall in oil prices. In contrast, interest payments on government’s debt went up 5.80% to $4.10B, due to the 9.24% rise in interest payments on domestic debt to $2.60B, while interest payments on foreign debt steadied at $1.50B.
Yearly Government Deficit by November (In $M)
Source: Ministry of finance