Despite a 14.5 per cent rise in domestic revenues and external grants extended to the Kingdom in 2007, the state budget recorded a deficit of 5.4 per cent of the gross domestic product (GDP), according to official figures released Monday.Although the country recorded a JD502.5 million increase in domestic revenues and grants, the 2007 budget deficit stood at JD614.5 million, an increase of 1 per cent from 2006.According to the Ministry of Finance monthly bulletin, external grants totaled JD343.4 million in 2007 compared to JD304.6 million in 2006 while domestic revenues were 14.5 per cent higher in 2007, amounting to JD3,628.1 million compared to JD3,164.4 million in 2006.The bulletin attributed the increase in the domestic revenues to a JD338.6 million rise in tax revenues, and similar raises in non-tax revenues and repayments by JD117.6 million and JD7.5 million respectively.The increase in tax revenues resulted mainly from a 20.1 per cent rise in sales tax equaling JD245.4 million, accounting for 72.5 per cent of the overall computed increase.
