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FINANCIAL NEWS
Lebanon gives nod on $13b budget for 2010
20 Jun 2010
(MENAFN) The Lebanese government has finally gave its approval for the 2010 budget, which exceeds $13 billion, after a delay of several months, AFP reported.
The Information Ministry said that the budget, which is the first to be approved by cabinet since 2005, was endorsed and must now be submitted to parliament. Amounting to $13.33 billion, the budget is based on relatively modest economic growth of 4.5 percent, the finance ministry said. This compares with the International Monetary FundÂ’s (IMF) 2010 growth forecast of at least 8 percent.
Ministry Advisor, Nabil Yamout, said that the ministry should remain cautious on growth forecasts, but all the economic indicators suggest much bigger growth than 4.5 percent.
The Lebanese 2010 budget expects expenditure of $13.3 billion and revenues of $9.3 billion. The resulting deficit of $4 billion is 10 percent of gross domestic product (GDP), up from 9 percent at the end of 2009.
Despite LebanonÂ’s success in withstanding the fallout from the global financial crunch, national debt tops $50 billion, which is 153 percent of GDP, as it has been accumulated since the end of the 1975-1990 civil war. Around 35 percent of the new budget is dedicated to servicing this debt, which the government has managed to reduce from 180 percent of GDP since 2006.
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