The 2012 Syria budget will see an increase of 58 percent in allocation compared to the 2011 fiscal.
Syria Budget 2012 Highlights and Possible Impact:
As per the Syria budget 2012 approved by the national government, the expenditures will account for the total increase in the budget s value.
The aggregate value of the 2012 budget is 1,326 billion Syrian pounds or 27 billion US dollars. In 2011 the total value of the state budget was 835 billion Syrian pounds or $7.6 billion.
In 2012 the Syrian government is expected to spend SYP 375 billion or 7.6 billion US dollars. This will be 1.3 percent lesser than the expenditure for 2011 fiscal.
The running expenses are expected to go up by 109 percent in 2012 fiscal. This figure is supposed to be approximately 18 billion US dollars or 951 billion Syrian pounds.
Mohammed Jleilati, the Minister of Finance, has stated that in 2012 the expenses stay the same as 2011 with the exception of the 4 percent addition to the health and education sectors.
The salary structures have been revised as well for the upcoming fiscal.
The civil servants will be paid higher salaries in 2012. The energy subsidies are supposed to go up as well.
The government will be spending SYP 1326 billion or US$ 26.9 billion for various social causes.
43% of the increase in the budgetary expenditure has come about after several items were reclassified.
Jleilati has stated that the real increase in expenses for the upcoming fiscal is 15 percent.
The Minister of Finance has also stated that real expenditure for investments will stay the same in 2012.
He says that there are some visible differences because categories such as agriculture supporting fund and social aid fund have been reassigned to current expenditures from investment expenditures.
It is being assumed that the Syrian Pound could depreciate slightly in the upcoming year in spite of a stable inflation rate. The income in foreign currency has gone down recently and this can lead to an increased consumer price index.
Syria Budget 2012 Expert Analysis:
The experts have been amazed at the way the 2012 Syria budget has shaped up. Al-Watan, a privately held newspaper, has termed it to be the biggest ever budget in the country s history. The budget focuses primarily on its expenses but also maintains a level of investment that is equal to the present fiscal. The newspaper has further stated that the government needs to focus on some critical areas:
Reduction of consumption
Projects that are economically feasible and profitable
A number of analysts have expressed their wonder at the sources of funding for the present administration. The US and Europe have recently imposed stricter sanctions on Syria and majority of the investment related projects have been suspended these factors have presumably made them curious about the sources for such a big budget.
The government has recently come out with the complete worth of its oil resources. This has happened for the first time in its history and has, according to Jleilati, contributed to the increased budget.