Legal documentation

Revenues of the Independent Municipal Fund for 2006

By The Monthly - monthlymagazine.com | - last updated :

français |  عربي

Decree no. 614 dated October 27th 2008 provided for the distribution of the revenues of the Independent Municipal Fund for 2006 for the amount of LBP290 billion.

Mechanism of revenue distribution

Decree no. 614 determined the mechanism of distribution of such revenues amounting to LBP290 billion as follows:

- 12% of the fund, LBP34.8 billion, shall be allocated to municipality unions, including LBP20.8 billion distributed based on the number of registered population in the scope of the municipalities of the unions. LBP14 billion should be distributed relatively to all unions based on the number of municipalities that form each union and allocated to expenses for development projects and studies.

- 5% of the funds remaining (LBP255.2 million) which amounts to LBP12.760 billion, to be allocated to the Civil Defense.

- The remaining amount of LBP242.440 billion shall be allocated to municipalities, including LBP218.96 billion distributed to the municipalities based on the number of registered population in the relevant civil status registers. Each municipality shall get 78% of the amount based on the real total of its direct taxes during the two precedent years to the year of distribution (a percentage of 22%).

- The remaining sum, LBP24.244 billion, shall be distributed equally to all municipalities, with equal to or less than 4,000 registered populations. Each municipality shall get a share of LBP 36,733,000.

The main problem in this distribution is that it depends essentially on the number of registered population and not the number of residing. Most of the municipality get relatively high amounts compared to actual residents, while others get insignificant amounts.

Number of municipalities and their revenues

The revenues are distributed among the existing municipalities at the date of the issuance of the decree. Therefore, the number of municipalities in Lebanon on October 27th 2008 was 944 municipalities. Table 1 shows the shares of municipalities and municipalities unions by Qada’a (Caza).

The shares of municipalities and municipalities unions from the distribution of the IMF* revenues for 2006 by Caza Table 1
Qada’a (Caza) Number of municipalities Value of the distributed share (LBP billion) Value of the shares allocated to development projects (LBP billion) Value of the shares of the municipalities unions (LBP billion) Total (LBP billion)
Beyrouth 1 42.600 - - 42.600 
Baabda 45 12.140 1.212 909.7 (LBP million) 14.262
Jbayl 36 3.950 1.102 1.018 6.070
Chouf 73 9.810 2.057 1.831 13.698
Aaley 55 7.200 1.616 784 (LBP million) 9.600
Keserouane 48 7.750 1.579 1.460 10.789
Matn 49 16.200 1.138 1.782 19.120
Mohafazah of Mount-Lebanon 306 57.050 8.704 7.784,7 73.538.7
Trablous (Tripoli) 3 13.661 - 3.110 16.771
Batroun 24 2.772 734 (LBP million) 1.047 4.553
Bcharreh 11 2.010 257 (LBP million) 1.026 3.293
Zgharta 31 3.469 881 (LBP million) 1.135 5.479
Koura 34 3.100 1.102 1.132 5.334
Minieh-Danniyeh 33 5.317 844 (LBP million) 1.537 7.698
Mohafazah of North-Lebanon 136 30.323 3.818 8.987 43.128
Mohafazah of Aakkar 100 12.857 2.900 2.091 17.848
Zahleh 29 9.148 514 (LBP million) 1.024 10.686
West Beqaa 29 4.610 587 (LBP million) 1.524 6.721
Rachaiya 26 2.342 808 (LBP million) - 3.150
Mohafazah of Beqaa 84 16.100 1.909 2.548 20.557
Baalbek 58 12.840 1.175 2.086 16.101
Hermel 5  1.860 110 (LBP million) 992 2.962
Mohafazah of Baalbek - Hermel 63 14.700 1.285 3.078 19.063
Saida 45 9.197 1.028 1.576 11.801
Jezzine 35 2.500 1.102 1.049 4.651
Tyr (sour) 58 9.756 1.506 2.436 13.698
Mohafazah of South Lebanon 138 21.453 3.636 5.061 30.150
Nabatiyeh 39 7.545 698 (LBP million) 2.176 10.419
Bent Jbayl 36 7.570 550 (LBP million) 1.239 9.359
Hasbaya 15 2.295 403 (LBP million) - 2.698
Marjaayoun 26 5.700 477 (LBP million) 1.061 7.238
Mohafazah of Nabatiyeh 116 23.110 2.128 4.476 29.714
Total 944 218.193 24.380 34.025,7 276.598,7
Source: Information International according to the decree no. 614/2008

*Independent Municipal Fund

Major shares

Shares of the Independent Municipal Fund were distributed to 21 municipalities, amounting in total to around LBP87 billion and representing 40% of the lump sum distributed to all municipalities as shown in Table 2, where the municipalitiy of Beyrouth had the major share, followed by Trablous (Tripoli) and Saida respectively.

Value of the major shares distributed to 21 municipalities Table 2
Municipality Share (LBP billion)  % of the total funds distributed to all the municipalities
Beyrouth 42.6 19.52
Trablous (Tripoli) 10.8 4.95
Saida 3.37 1.54
Zahleh 3.6 1.65
Borj Hammoud 2.6 1.19
Mina 2.5 1.14
Jdaidet El Matn - Baouchriyeh - Sadd 2.3 1.05
Ghobayreh 2.25 1.03
Minieh 1.14 0.52
Baalbek 1.9 0.87
Tyr (Sour) 1.8 0.82
Jounieh 1.6 0.73
Sinn El Fil 1.1 0.5
Zgharta - Ehden 1.1 0.5
Borj El Brajneh 1.1 0.5
Hadath 1.1 0.5
Hermel 1.1 0.5
Nabatiyeh Et Tahta 1.1 0.5
Bint Jbeil 1.1 0.5
Choueifat 1.06 0.48
Chmistar 1.03 0.47
Source: Information International according to the decree no. 614/2008

The revenues of the Independent Municipality Fund are the total taxes and fees collected by the state from import fees and duties, among others, and distributed to all municipalities, as mentioned in Table 2.

As for other revenues not covered by this report, they include:

- Telephone, water and electricity bills (the revenues of electricity bills are not currently distributed) of households and institutions within the scope of the municipality, where such departments collect the relevant fees to each municipality.

- Revenues that are earned by municipalities directly from industrial, commercial, and handicrafts institutions and households within the scope of the municipality.

- Fees of construction custody and other services provided by municipalities.

- Grants and donations.

- Revenues from municipal properties (buildings, lands, organizations).