Safadi: 2012 budget sees 65% increase in investment expenditures

Minister of Finance Mohammad Safadi announced Thursday that the new version of the general budget draft for 2012 sees a 65% increase in investment expenditures compared to that of 2011 and seeks to reduce the debt to GDP ratio from 135.1 to 134.8 percent.              

This announcement was made following a close meeting with central bank governor Riyad Salameh and the Banking Association, headed by Joseph Tarabay - where it was explained that the percentage of total deficit in the new project is estimated at 5.568 billion LBP. The Minister added that the updated version of the project requires an increase of the value added tax from 10 to 12 percent.           

Safadi stated that the project has been submitted to Cabinet, noting that the value of revenue stands at 15.787 billion LBP, while the costs 21.355 billion pounds.                 

In his concluding remarks Safadi stressed the need to maintain financial stability by controlling the level of deficit to keep the debt to GDP ratio on the decline.