Lebanon approves draft state budget; deficit slashed to 7.5 pct of GDP

The Lebanese government ministers announced Friday the cabinet has approved the draft state budget on Friday and a session to formally seal it will be held at the presidential palace.

"All the clauses and articles have been agreed on," Finance Minister Ali Hassan said after a cabinet meeting in an interview with broadcaster NBN. The information minister said in a news conference the draft budget cut the deficit to 7.5% of GDP from 11.5% in 2018. "Now, praise God, we are done. The budget is complete," Information Minister Jamal Jarrah said.

The budget is seen as a critical test of the government's determination to make changes that have been put off for years by a state riddled with corruption and waste. Lebanon has one of the heaviest public debt burdens in the world. The budget could help unlock some $11 billion in financing pledged at a Paris donors' conference last year for infrastructure investment, if it wins the approval of donors along with other reforms.