BEIRUT, Oct 29 – Lebanon’s draft budget for 2008 forecasts a deficit equivalent to 6.3 percent of gross domestic product , the finance ministry said on Monday.A presentation of the draft budget, approved by cabinet on Saturday, forecast spending of 11,195 billion Lebanese pounds , revenue of 8,810 billion pounds and GDP of 37,826 billion pounds.

Projected real GDP growth for 2008 was 4.0 percent, the ministry said. Suffering from a protracted political crisis, the economy is forecast to grow just 2 percent this year.The economy is also saddled with a massive public debt equivalent to some 180 percent of GDP.

Debt servicing costs are forecast to fall 5 percent in 2008 from their forecast level for 2007, the finance ministry said, attributing the drop to financial assistance pledged by international donors at a Paris meeting in January.The primary surplus — excess government revenue over expenditures before interest payments — is forecast to more than double to 1,543 billion pounds from a forecast 735 billion pounds this year.Foreign investors generally view the primary surplus as a key gauge of a country’s ability to service its debt.