BEIRUT: All Lebanese government institutions must cut their 2018 budgets by 20 percent as part of the country’s efforts to revamp its struggling economy, Prime Minister Saad Al-Hariri said on Tuesday.
Costs must be reduced “in accordance with the policy of spending rationalization and controlling public finances,” a statement from Hariri’s office said.
Lebanon’s economy has been battered by six years of war in neighboring Syria and by simmering political divisions.
After years of paralysis in government decision-making, Lebanon last year passed its first government budget since 2005.
The government is now trying to finalize the 2018 budget, in which analysts and politicians have said they hope to see serious efforts made to get the state’s finances in order.
Growth slowed from an average of eight percent before the Syrian conflict began in 2011 and the country has one of the world’s highest ratios of debt to gross domestic product, around 140 percent. 2017 growth is estimated to be about 2.5 percent.
The order to slash budgets comes ahead of a major donor conference to be held in Paris in March, at which Lebanon is expected to seek support for its economy and army and to help it deal with the approximately one million Syrian refugees the country is hosting.
The country’s crumbling infrastructure has not been overhauled since the end of a 15-year civil war in 1990 and Lebanon has plans for a 10-year $16 billion capital investment program.
Lebanon recently engaged management consultant company McKinsey to help transform the stagnating economy.
Ministries must present the amended budgets to the finance ministry within two weeks from the decree’s publication.
Hariri is attending the World Economic Forum in Davos, Switzerland this week.
Lebanese government departments must cut 2018 budgets by 20%, PM Hariri says
Lebanese government departments must cut 2018 budgets by 20%, PM Hariri says
Syrian government and SDF agree to de-escalate after Aleppo violence
- Turkiye views the US-backed SDF, which controls swathes of northeastern Syria, as a terrorist organization and has warned of military action if the group does not honor the agreement
DAMASCUS: Syrian government forces and the Kurdish-led Syrian Democratic Forces agreed to de-escalate on Monday evening in the northern city of Aleppo, after a wave of attacks that both sides blamed on each other left at least two civilians dead and several wounded.
Syria’s state news agency SANA, citing the defense ministry, said the army’s general command issued an order to stop targeting the SDF’s fire sources. The SDF said in a statement later that it had issued instructions to stop responding to attacks by Syrian government forces following de-escalation contacts.
The Syrian health ministry said two people were killed and several were wounded in shelling by the SDF on residential neighborhoods in the city. The injuries included two children and two civil defense workers. The violence erupted hours after Turkish Foreign Minister Hakan Fidan said during a visit to Damascus that the SDF appeared to have no intention of honoring a commitment to integrate into the state’s armed forces by an agreed year-end deadline.
Turkiye views the US-backed SDF, which controls swathes of northeastern Syria, as a terrorist organization and has warned of military action if the group does not honor the agreement.
Integrating the SDF would mend Syria’s deepest remaining fracture, but failing to do so risks an armed clash that could derail the country’s emergence from 14 years of war and potentially draw in Turkiye, which has threatened an incursion against Kurdish fighters it views as terrorists.
Both sides have accused the other of stalling and acting in bad faith. The SDF is reluctant to give up autonomy it won as the main US ally during the war, which left it with control of Islamic State prisons and rich oil resources.
SANA, citing the defense ministry, reported earlier that the SDF had launched a sudden attack on security forces and the army in the Sheikh Maqsoud and Ashrafiyah neighborhoods of Aleppo, resulting in injuries.
The SDF denied this and said the attack was carried out by factions affiliated with the Syrian government. It said those factions were using tanks and artillery against residential neighborhoods in the city.
The defense ministry denied the SDF’s statements, saying the army was responding to sources of fire from Kurdish forces. “We’re hearing the sounds of artillery and mortar shells, and there is a heavy army presence in most areas of Aleppo,” an eyewitness in Aleppo told Reuters earlier on Monday. Another eyewitness said the sound of strikes had been very strong and described the situation as “terrifying.”
Aleppo’s governor announced a temporary suspension of attendance in all public and private schools and universities on Tuesday, as well as government offices within the city center.
