- 27
- Jan.
- 2025
The exception is not the rule.
This saying does not apply to Lebanon, where for over a decade, well after the signing of the Taif Agreement in 1989, the Amal-Hezbollah duo has persistently claimed—“de facto and de jure,” as they often assert—the Ministry of Finance, one of the most coveted portfolios in the country.
The reasons behind Hezbollah and Amal’s interest in this ministry are numerous, mainly stemming from its economic, strategic and political weight. Beyond its administrative functions, the ministry plays a pivotal role in managing the nation’s financial resources and shaping its economic and fiscal policies. But what exactly does this entail? Why such an attachment to this portfolio? What powers does it grant its holder?
The Central Role of the Ministry of Finance in Lebanon
The Ministry of Finance wields central authority over Lebanon’s public financial management. Its responsibilities extend far beyond merely collecting taxes. It oversees public expenditures, prepares the annual budget and implements the country’s fiscal policy. Every major economic decision—from allocating state funds to determining sectoral budgets for healthcare, education and infrastructure—requires the involvement and signature of the Minister of Finance. This grants the minister significant control over the allocation of state resources and, by extension, the country’s economic development.
“The powers of the Minister of Finance are vast and extend to preparing the state budget, monitoring its execution, customs management, land registry oversight and scrutinizing the operations and accounts of the Central Bank of Lebanon, including appointing its key officials and central council members,” explains Nasri Diab, a professor and lawyer. “Moreover, constitutionally, the Minister of Finance's signature is the third required for the validity of most decrees, regardless of their nature—including, in a recent context, those related to judicial appointments,” he adds.
A Keystone in Lebanon’s Political System
The Minister of Finance’s signature is indispensable for the validity of numerous decrees and administrative decisions. While ministers in Lebanon are generally responsible for implementing government policies, many reforms or economic initiatives cannot be validated or enacted without the Minister of Finance’s approval. Therefore, this position provides significant leverage over numerous political and economic actions, effectively granting the minister substantial influence over the country’s public affairs.
Additionally, the Ministry of Finance oversees Lebanon’s financial and banking institutions, including the Central Bank, which manages monetary policy, and the regulation of financial markets. Fiscal policies, public debt management and interactions with international financial institutions such as the IMF and the World Bank also fall under this ministry’s authority. Controlling this sector allows for shaping the country’s economic trajectory—a power that does not go unnoticed by political factions aiming to bolster their influence.
Amal and Hezbollah’s Grip on the Ministry
Given the above, Hezbollah and Amal, the two dominant forces within the Shiite community, have persistently sought to monopolize the Ministry of Finance. This control ensures them not only direct influence over public finances, but also a strategic lever to consolidate their political standing within the Lebanese government.
With control over public funds, these groups can finance projects advantageous to their agendas, secure resources for their constituents and strengthen their social and political networks. Furthermore, managing public finances enables them to influence the allocation of international aid and foreign funding—critical for Lebanon, a country heavily reliant on external assistance due to its fragile economy.
However, as Paul Morcos, a lawyer and director of the Justicia foundation, notes, “The Constitution does not stipulate that any ministerial post is allocated to a specific sect.” The preamble and Article 95 of the Lebanese Constitution emphasize the need for equitable communal representation in government formation.
Consequently, Morcos argues that “any repeated practice that bypasses the Constitution cannot establish a custom, as Amal and Hezbollah claim.”
Notably, in the years following the Taif Agreement, the Ministry of Finance was held by individuals from various religious sects. It is only in recent years that the Amal-Hezbollah tandem began asserting exclusive control over this portfolio.
A Strategic Tool in Lebanon’s Complex Political Landscape
In Lebanon’s intricate political landscape, where sectarian alliances and rivalries play a decisive role, the Ministry of Finance has become a critical strategic instrument, strengthening its holder's position in the national political arena. It remains uncertain whether the designated Prime Minister, Nawaf Salam, or the Amal-Hezbollah alliance will emerge victorious in this power struggle.
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