A Framework for Reducing the Lebanese Budget Deficit


Table of Contents | LET#6: Part 2


Table 6
Summary of Government Finances (in billions of LL)

1996
1997
1998

Budget

Actual

Budget

9 months
Actual (1) Expected

Budget
Revenues
4,025
3,533
4,100
2,719
4,000
4,956
Expenditures
6,458
7,225
6,400
5,883
8,000
7,925
of which interest payments
(2250)
(2508)
(2700)
(2418)
(3200)
(3200)
Deficit
2,433
3,692
2,300
3,164
4,000
2,969
in percent
Deficit / GDP (1)
11.9
18.1
10.2
14.1
17.8
11.8
(1) LCPS estimates for GDP and the expected actuals for 1997.
Source: Ministry of Finance


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Table 7
New Sources of Revenues
in billions of LL
1998
Sales tax on good and merchandise
240
Sales tax on tourist institutions
10
Ownership deed renewal tax
30
Market fees
11
Lebanese University registration fees
6
Airport fees
4
Fees on cab license plates
17
Work permit fees
16
Fees on other permit
3
Revenues from settlement of public beach properties
50
Source: Proposed Budget 1998

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Table 8
Breakdown of Revenues
in billions of LL
Budget 1997
Proposed Budget 1998
Tax revenues
3,152
3,626
Tax on Income, Profits, and Capital
375
690
Income tax
375
440
Sales tax
0
250
Sales tax on goods and merchandise
0
240
Sales tax on tourist institutions
0
10
Tax on property
405
470
Tax on constructed property
80
50
Tax on inheritance
50
40
Non-recurrent tax on property
275
380
Real estate taxes
275
350
Ownership deed renewal tax
0
30
Internal fees on goods & services
292
286
Internal fees on goods
35
62
Monopoly boards' profits
30
70
Tax on services
17
14
Other taxes on goods and services
210
140
Car registration
50
80
Tax paid by companies with concessions
120
10
Departure tax
40
50
Fees on trade and international exchange
1,800
1,950
Import fees
1,800
1,950
Other tax revenues
280
230
Revenues from revenue stamp
250
210
Taxes not classified in other accounts
30
20
Revenues from sources other than tax
908
1,330
Revenues from public boards, government institutions, and government property
374
704
Revenues from non-financial public boards and government institutions
243
607
Revenues from the Casino du Liban
15
32
Revenues from grottos, historical and touristic sites
3
5
Revenues from surplus of the national lottery boards' budget
25
20
Revenues from surplus of the communications ministry' budget
200
550
Revenues from government financial institutions
100
80
Revenues from the Central Bank (profit and difference in value of gold and foreign currency reserves)
100
80
Revenues from government property
11
15
Revenues from the Beirut International Airport
10
10
Revenues from other government property
1
5
Other revenues from public institutions
20
2
Interest on capital
20
2
Fees and revenues from administrative and sales sources
349
502
Administrative fees
230
428
Fees collected by public notaries offices
20
20
Consular fees
50
30
Fees collected by the surete generale
25
75
Traffic law infringement fines
115
275
Fees collected by judicial departments and courts
20
17
Market fees
0
11
Administrative returns
18
25
Lebanese University registration fees
0
6
Examination fees
12
6
Airport fees
0
4
Revenues from seaport managements
6
9
Sales
1
19
Proceeds from sale of official gazette and justice ministry bulletin
1
2
Fees on cab license plates
0
17
Fees on permits
0
20
Work permits fees
0
16
Fees on other permits
0
3
Administrative fees and returns from other services
100
10
Revenues from fines and confiscation procedures
20
11
Miscellaneous non-tax revenues
165
113
Retirement payments deductions
50
30
Post offices revenues
10
10
Exceptional non-tax revenues
105
73
Revenues from settlements of building violations
100
20
Repossessions
5
3
Revenues from settlements of public beach properties
0
50
Revenues from sales of public assets and settling of loans
40
0
Total Revenues
4,100
4,956
Source: Ministry of Finance



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Table 9
Proposed public spending for 1998
(in billion of LL)
Before
After the Adjustment
Current Expenditure
6,268
6,588
Gross total of wages, salaries and social service payments
2,491
2,492
Debt servicing
3,200
0
Fund for the displaced
10
--
Council of the South
64
--
Social welfare institutions
91
--
Educational center
25
235
Administrative expenses (consumer products and services)
231
--
Hospitalization expenses
225
--
Servicing financial debts and subsidizing the grain and sugar cane office (not including tobacco subsidy)
39
--
Power subsidy
100
--
Public housing institution
50
--
Other current expenditure items
67
--
Investment expenditure
648
703
Installations under construction
351
386
Equipment
66
--
Maintenance
54
74
Payments earmarked for investment (representing the government's share in the cost of public projects mainly financed by foreign loans)
143
--
Other expenditure items earmarked for investment
34
--
Budget reserves that can be used for various expenditure items
84
--
Budget expenditures
7,325
7,375
Total amounts expected to be spent from amounts carried over from the 1997
350
--
Total amounts expected to be allotted to municipalities
200
--
Total gross expenditure estimate
7,875
7,925
Source: Ministry of Finance


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Table 10
Breakdown of Expenditures
(Billions of LL)
Budget 1997
Budget 1998
Percentage Change 97-98
Presidency of the Republic
2.732
2.727
-0.18%
Parliament
39.166
35.559
-9.21%
Council of Ministers
408.758
475.274
16.27%
Ministry of Justice
31.317
34.573
10.40%
Ministry of Foreign Affairs
79.427
86.297
8.65%
Ministry of Interior
349.206
350.740
0.44%
Ministry of Finance
43.972
42.727
-2.83%
Ministry of National Defense
738.132
759.799
2.94%
Ministry of National Education
387.884
469.809
21.12%
Ministry of Public Health
159.646
270.155
69.22%
Ministry of Labor
3.795
4.486
18.20%
Ministry of Information
22.197
24.093
8.54%
Ministry of Public Work
145.659
125.073
-14.13%
Ministry of Agriculture
47.450
44.070
-7.12%
Ministry of Economy and Trade
4.649
4.791
3.07%
Ministry of Post and Communication
15.858
13.908
-12.30%
Constitutional Council
1.208
1.592
31.76%
Ministry of Water Resources
143.358
89.569
-37.52%
Ministry of Tourism
13.084
9.634
-26.37%
Ministry of Fuel
0.691
0.668
-3.44%
Ministry of Housing and Cooperatives
3.741
54.101
1346.37%
Ministry of Displaced
7.278
9.190
26.27%
Ministry of Rural and Municipal Affairs
0.550
0.977
77.63%
Ministry of Technical and Vocational Education
39.904
32.684
-18.09%
Ministry of Social Affairs
94.513
94.486
-0.03%
Ministry of Emigrant
6.744
5.986
-11.23%
Ministry of Transportation
90.633
106.323
17.31%
Ministry of Culture and Higher Education
153.848
187.242
21.71%
Ministry of Environment
5.540
5.451
-1.62%
Ministry of Industry
1.386
3.326
139.97%
Debt to be Paid
2,700.00
3,200.00
18.52%
Budgetary Reserves
690.675
829.690
20.13%
Total Expenditures
6,433.0
7,925.0
23.2%
Note: Total expenditures in 1998 include re-authorized allocations from the previous years and allocations for municipalities. Comparable figures are not included in the 1997 budget figures. This factor accounts for a significant portion of the projected expenditure increase.
Source: Ministry of Finance.

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