The fiscal figures in Lebanon during the first half of this year showed that both public revenues and expenditures declined due to the double contractions, which led to a slight decrease in the fiscal deficit.
The total public spending decreased by 16.3% during the first half of this year, and total public revenues decreased by 19.8% during this period, which led to a contraction of the fiscal deficit by 8.1%.
On the other hand, the public expenditures actually decreased by $1.4 billion, from $8.2 billion in the first half of 2019, amounting to $6.8 billion in the first half of 2020. The decline in public spending is mainly related to lower interest payments, mainly due to the state's default in March of this year.
Debt service decreased by 51.5 percent annually in the first half of 2020, dropping from 2.6 billion dollars to 1.3 billion dollars, with a decrease in the payment of interest on foreign currency by 87.6 percent, and a decrease in the payment of interest on domestic debt by 26.1 percent on annual basis.
Source (Economic Bulletin Website, Edited)
