| 1 October 2022, Saturday |

How did the government mitigate expenditures in the draft budget?

The President of the Republic Michel Aoun said during the Cabinet session that the draft budget allocated 7,600 billion Lebanese pounds for expending on interests, including 1,200 billion long-term debts to international institutions, and 6,400 billion interests to banks and the Central Bank of Lebanon.

However, the draft budget did not include interests on Eurobonds.

Aoun considered that it is not assumed that interest will be paid on the internal debts of the Central Bank and banks, similar to the Eurobonds. The amount of 6,400 billion will be allocated to finance the electricity deficit instead of the treasury advance, and the rest will be to increase pensions for the public sector.

Aoun pointed out that this measure reduces the budget deficit, cancels the treasury advance and mitigates inflationary effects.

To shed light on this issue, former Economy Minister Sami Haddad joined us via phone.

  • Sawt Beirut International