Lebanese Parliament Passes Amended 2024 Budget

Shafaq News/ Lebanon's parliament approved an amended budget for 2024 after three days of contentious debates, revealing deep divisions in the country's politics.

Caretaker Prime Minister Najib Mikati faced heated exchanges during the parliamentary sessions, underscoring the challenges that have hindered Lebanese politics and prolonged a year-long vacuum in the presidency.

The amended budget, modified from Mikati's initial version, anticipates higher state revenues from VAT and customs fees. It includes measures targeting individuals who allegedly gained illicitly during Lebanon's financial crisis, imposing fines on companies that unfairly benefited from the central bank's previous currency exchange platform, and penalizing traders who profited from the central bank's subsidies on imports.

Mikati asserted that the government "stopped the collapse" and initiated the recovery phase. However, many parliamentarians objected to his remarks during the session.

The 2024 budget draft used an exchange rate of 89,000 Lebanese pounds to the U.S. dollar for most calculations and 50,000 pounds for others. The passed budget indicated a calculated deficit of 0%, with expenditures equal to revenues. Critics argued that using various exchange rates might create the impression that the state was earning more than reality.

Lebanon's economy has faced a severe downturn since 2019, with the Lebanese pound losing about 95% of its value, banks restricting access to savings, and over 80% of the population falling below the poverty line. The crisis stems from decades of wasteful spending, corruption among the ruling elite, and excessive lending by banks connected to the state.