Government Endorses 2025 Budget, Sets Reform Priorities

Lebanon’s Cabinet on Thursday approved the 2025 budget by decree and agreed on a mechanism to implement reforms, prioritizing measures seen as crucial for economic recovery. The session, the first since the government secured a confidence vote, was held at Baabda Palace under President Joseph Aoun’s chairmanship. The agenda included 22 items.

Comprehensive Reform Plan

Following the session, Prime Minister Nawaf Salam announced the launch of a wide-ranging reform initiative based on the ministerial statement.

“I have emphasized the need to complete the reform provisions outlined in the Taif Agreement,” Salam said. “A decision was made to hold Cabinet meetings at an independent venue, and we agreed on corrective measures and a timeline for ministerial work.”

He said ministers reviewed a detailed list of requirements for each ministry and the steps needed for implementation. An agreement was also reached to reinstate a transparent mechanism for administrative appointments and regulatory bodies in coordination with the Ministry of Development and the Civil Service Council.

“The 2025 budget was issued to ensure the continuation of public services and essential needs,” Salam stated. “While we could have withdrawn it for further debate, we do not have the luxury of time. However, alongside its approval, we have tasked the finance minister with reassessing the budget decree to mitigate any potential economic or social repercussions. Most importantly, we will immediately begin work on the 2026 budget.”

President Aoun’s Address

At the start of the session, President Aoun congratulated the government on securing parliamentary confidence with 95 votes, saying it reflected trust from both lawmakers and the public. He urged ministers to meet the expectations placed upon them.

During the meeting, Aoun condemned the display of a Lebanese flag in Martyrs’ Square with a red mark over its cedar emblem, calling it unacceptable.

“No matter the intent, altering the national flag is impermissible,” he stressed. “The flag is a symbol of the nation, and preserving it is our collective duty.”

Aoun also briefed the Cabinet on his recent visit to Saudi Arabia and discussions with Crown Prince Mohammed bin Salman, emphasizing the kingdom’s willingness to support Lebanon once necessary reforms are enacted.

“I made it clear that reforms are a Lebanese priority before being an international demand,” Aoun said. “Lebanon needs these reforms, but Saudi support remains crucial.”

He said he had requested the Crown Prince to lift the travel ban on Saudi citizens visiting Lebanon and to facilitate Lebanese exports to the kingdom.

“These requests are under review, as noted in the joint statement issued after the visit,” he added.

Aoun announced plans for a second visit to Saudi Arabia after Eid al-Fitr, during which several ministers will accompany him to sign bilateral agreements—a step he said would provide a significant boost to Lebanon.

The president also discussed his participation in the emergency Arab League summit in Egypt, where he met with ten heads of state who reaffirmed their support for Lebanon, contingent on the implementation of reforms.

Jordan’s King Abdullah II pledged political backing and assistance in bolstering the Lebanese Armed Forces, while Palestinian President Mahmoud Abbas expressed support for Lebanon’s policies on Palestinian refugee camps and arms control within them.

Aoun reiterated that the Cabinet, not political parties or sects, holds the decision-making authority.

“We are here to take action, not to obstruct governance,” he said. “The public and international community are watching closely.” He also urged ministers to uphold confidentiality regarding Cabinet deliberations.

Key Cabinet Decisions

The Cabinet approved a draft law exempting individuals affected by Israeli aggression from certain taxes and fees.

Additionally, it authorized the appointment of 63 specialist officers to the Internal Security Forces.