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FINANCIAL NEWS
Lebanon increases 2012 expenditure by 65%
28 May 2012
(MENAFN) Lebanese Finance Minister, Mohammad Safadi, stated that the government decided to boost 2012’s capital expenditure by 65 percent to USD10.5 billion, reported Arabian Business.
Safadi said that the decision comes as the government revised this year’s budget, which also includes increasing the value added tax (VAT) from 10 percent to 12 percent, in addition to raising tariff on bank deposits from 5 percent to 7 percent.
He added that under the 2012 budget draft, revenue is forecasted at USD10 billion, whereas deficit rate is expected to grow to 8.7 percent of gross domestic product (GDP) from 7 percent in previous estimates, at USD3.7 billion.
It is worth noting that Lebanon forecasts 2012’s economy to expand 3 percent, compared with a preliminary 5.2 percent in 2011, however, the International Monetary Fund (IMF) put the country’s growth at 1.5 percent in 2011.
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