The Caretaker Minister of Finance, Youssef Khalil, stated that “the approval of the 2025 budget draft by decree, after adhering to the deadlines set by law, has now become a necessity. According to him, “this remains financially safer than not approving it and resorting to expenditures based on the provisional twelfth rule.”
Khalil noted that “expenses based on this rule bind public finances to the 2024 budget ceiling, which amounts to 308,000 billion Lebanese pounds, or 3.6 billion US dollars, while the needs for the year 2025 are estimated at 445,000 billion Lebanese pounds, or 5 billion US dollars.” In this context, he indicated that this will lead to cash advances to cover additional needs and, consequently, increase the budget for 2026, affecting financial regularity and the principle of completeness and credibility of the budget.
In a statement, he explained that “the additional projects that do not have funding, if the 2025 budget draft is not approved, will negatively affect sectors, particularly the social sector because more than 6,000 billion have been allocated to the expenditure programs undertaken by the Ministry of Social Affairs, but also to the health sector, treasury bills, as well as contributions to the National Social Security Fund, road maintenance, rents and other important expenses.”
Khalil also fears that “the funding for salaries, wages, social benefits, pensions and social assistance for the public sector, whose funds are no longer abundant, will decrease significantly and lead to a severe crisis if the budget is not approved soon,” not to mention the inclusion in the 2025 budget draft of the cost of additional military recruitment and the differences in the flat transport fees for security services.
He emphasized that “the approval of the 2025 budget draft is the main guarantee for managing and financing the public sector, to avoid any disruption or default in administrative and institutional work,” noting that “the Ministry of Finance is preparing a bill to open additional credits of about 86,000 billion Lebanese pounds to finance salaries, social benefits and pensions for the public sector, to ensure the continuity of work in public administrations and institutions.”
He reminded that the 2025 budget draft, which Parliament has not been able to discuss due to the war and its repercussions, is “the result of efforts and discussions with various administrations and public institutions, and represents the minimum necessary to ensure the continuity of all sectors,” considering that “its absence could hinder the functioning of public service.”
Finally, Youssef Khalil revealed that the concerned departments of the Ministry of Finance, with the support of international parties, have begun implementing reform measures in the budget preparation process. He expressed hope that the new government, “after three corrective budgets, will crystallize the reform vision for the 2026 budget draft.”
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