World Economy

Weakness in Draft Budget

Weakness in Draft BudgetWeakness in Draft Budget

Lebanon Finance Minister Ali Hasan Khalil’s 2015 draft budget is not expected to be ratified by cabinet or parliament unless the bill is totally revised or amended to make it more realistic, insiders, former ministers and economists say, NewsNow reported. “Under the pretext of financing the wage hikes for public school teachers and civil servants, Khalil increased spending by almost 30% compared to 2014 and added more taxes at a time when the economy is experiencing a sharp slowdown. “This does not work,” a financial expert close to government circles said. The bill, which projects total spending of LL23.362 trillion ($15b), revenues of LL12.108 trillion and a deficit of LL7.728 trillion, agreed to postpone deliberations on the issue until Tuesday.