Cabinet Agrees on Need for State Budget as Economic Losses Estimated at $15 Billion
The cabinet convened in a special session on Monday to tackle the worsening financial and economic situation in the country in light of an absent state budget since 2005, reports said.
Monday's meeting discussed Finance Minister Ali Hassan Khalil's report on the state's finances which was presented during last week's session in a move to find a solution for Lebanon's economic crisis.
“The ministers expressed their viewpoints on the finance minister's report, which describes the economic and financial situations and proposes practical suggestions on the need for passing a state budget, reforming the electricity sector, introducing taxing reforms to boost the economy, launching the oil and gas sector, and fighting corruption,” Information Minister Ramzi Jreij announced after the session.
“After discussions and deliberations, the cabinet endorsed the suggestion on the need to approve a state budget for the year 2017 according to the norms and within the constitutional deadlines,” he said.
The cabinet has also decided to “continue its discussions during the upcoming sessions regarding the proposals aimed at addressing the financial and economic situations,” Jreij added.
Ahead of the session, Industry Minister Hussein Hajj Hassan had said: “It is time that we realize that the past economic policies have failed. We must focus more on increasing production and exports while reducing imports.”
Hajj Hassan revealed that Lebanon's economic losses because of the Syrian exodus have amounted to $15 billion.
For his part, Environment Minister Mohammed al-Mashnouq said that the only way to “reduce Lebanon's public debt is by placing a state budget to be approved by the parliament and to approve the oil and gas decrees because it it the only file capable of reducing the debt.”
Last week's cabinet session ended with a dispute between Khalil and Mustaqbal bloc chief ex-PM Fouad Saniora when Khalil announced that he has a report about budget irregularities from the period between 1997 and 2010, during which Saniora was a finance minister, hinting that “the coming period might witness measures and accountability.
Due to conflicts between the rival political parties, Lebanon has been without a state budget since 2005 and its public debt has amounted to $70 billion.
Source: Naharnet
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