Cabinet to Continue Budget Discussions on Monday

The cabinet met Saturday for the fifth day in a row to discuss the 2022 draft budget, with the proposed treasury advance to Électricité du Liban becoming a point of contention as the government is set to resume its discussions on the budget on Monday.

Here’s what we know:

• Following Saturday’s meeting of Premier Najib Mikati’s government, Acting Information Minister Abbas Halabi told the press that the cabinet would convene again on Monday at 9 a.m. to discuss further funding for EDL and customs fees.

• “The electricity file is stormy,” Halabi, who is also the education minister, said. "Energy Minister Walid Fayad has been asked to justify” the LL5.25 trillion treasury advance penciled in for EDL to purchase fuel.

• He added that potential taxes “are still under discussion,” saying that the government is “keen not to overwhelm the Lebanese more.”

• Halabi said that the government was still debating the so-called “customs dollar,” or the specific Lebanese lira rate to the US dollar that would be used to calculate customs duties on imports, which is currently set at LL1500.

• The cabinet has been meeting since Tuesday to discuss the long-awaited 2022 draft budget, which was published by the Finance Ministry on Jan. 21. The budget, seen as critical for any effort to unlock IMF aid, forecasts a deficit of LL10.26 trillion – 20.77 percent of expenditures – excluding the allocation for EDL.