BEIRUT — Lebanon’s government met on the budget Monday for the first time in more than three months as talks with the International Monetary Fund about the country’s economic meltdown were poised to resume, according to AP.
The developments were aimed at controlling Lebanon’s worst economic crisis in its history. The Cabinet meeting at the presidential palace was held after the powerful Hizbollah and its main Shi’ite ally ended their boycott and were poised to participate in the design of a recovery plan.
The draft budget for 2022 is expected to propose increasing taxes and fees in a country struggling to deal with soaring poverty levels and hyperinflation.
It also projects spending more than 49 trillion pounds while revenues stand at just over 39 trillion pounds, with a deficit of about 21 per cent. Critics say that the deficit will be covered by printing money, in what would lead the Lebanese pound that has lost more than 90 per cent of its value over the past two years to lose more in the coming months.
It is not clear what exchange rate the government will use for the budget as there are several rates around the country. The official rate still stands at 1,500 pounds to the US dollar while the black market rate is about 23,000 pounds. Several other rates are used for withdrawal of bank deposits.
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