The Lebanese Parliament convened in late January to deliberate on the proposed 2024 state budget, beginning discussions at 11 a.m. on January 24.

The budget, comprising 96 articles, faced intense scrutiny despite being prepared on time. Originally devised by the Finance Minister during summer and later refined by the Council of Ministers, the budget's focus on increasing revenue through indirect taxes like VAT has drawn criticism for disproportionately affecting the nation's most vulnerable.

Critics, including Walid Marrouch, a professor at the Lebanese American University, dismiss the budget as a continuation of past fiscal strategies, lacking in meaningful reforms or investments in public services. The budget's withdrawal of certain provisions that supported the formal private sector during economic downturns and the inclusion of punitive measures for financial exploitation have sparked debate over their potential effectiveness and fairness.

Despite claims of being deficit-neutral, the budget's revenue projections are seen as overly optimistic. It also faces skepticism for its approach to tax increases during economic downturns, with suggestions that lowering tax rates might be more effective in boosting tax revenues according to the Laffer Curve principle.

Lebanon's economic situation has been precarious since 2019, with a significant devaluation of its currency and widespread poverty. Although Prime Minister Najib Mikati asserts that steps toward recovery have been initiated, many parliament members and experts argue that the government's role in any recent improvements is minimal. Concerns about inflationary financing methods and the lack of sectoral reforms, such as in electricity, are highlighted as major obstacles to genuine economic recovery.

Experts like Patrick Mardini of the Lebanese Institute for Market Studies call for tighter control over government spending and caution against optimistic growth projections for 2024. They advocate for opening up competitive sectors to drive development and criticize the budget for not addressing the need for capital investments and clarity on exchange rate policies.

In summary, the 2024 state budget of Lebanon is seen as a missed opportunity to enact crucial economic reforms, with experts warning that it may further burden the population and hinder recovery efforts.