What Are the Fiscal Reforms Announced by the Lebanese Government After Days of Protests

By Staff

The fiscal reforms announced by Lebanese Prime Minister Saad Hariri on Monday following nationwide protests are the following:

• Cutting 50% of salaries of some current and former presidents, ministers, and MPs

• Abolishing several state institutions, including the Ministry of Information

• Passing a law to establish an anti-corruption committee by the end of the year

• Drafting a law that seeks to restore stolen public funds

• Appointing regulatory bodies for the power sector, telecommunications, and civil aviation "as soon as possible"

• Not imposing new taxes in 2020 budget

• Slashing the budget of the agency in charge of development and construction by 70%, along with cutting the budget of other state bodies

• Reducing by $663mn the deficit in the power sector, which drains state funds while failing to meet the country's needs

• Speeding up the process of awarding contracts for the construction of new power plants

• Planning to approve, within three weeks, the first phase of a capital investment program that donors have pledged to finance with $11 billion, on condition of reforms

• Moving to privatize telecommunications

• Setting up scanners at border crossings to combat smuggling and toughening punishments for smugglers

• Approving social security benefits for the elderly by the end of the year

• Providing an additional $13.3mn to a program that supports poor families

• Providing $160 million to back housing loans

• Increasing tax on bank profits, as part of a plan of having banks aid in a deficit reduction of about $3.4bn

• Launching investment projects for the northern and southern entrances of the capital Beirut