IMF-Required Reforms Included in Lebanon’s Newly Approved 2024 State Budget

Lebanon’s cabinet approved a state budget for 2024 on Tuesday and submitted it to parliament.

“This is the first state budget to be approved within the constitutional timeframe since 2002, which is a major achievement,” Prime Minister Najib Mikati said at a press conference. He noted that the budget deficit for 2024 is lower than that of previous years’ budgets.

He also said that several reforms must be enacted in the country, including reforms of the public sector, the state IT system, the customs administration, and the banking system.

Both the reduction in the deficit and the reforms are requirements imposed by the International Monetary Fund in order for the organization to release funds to Lebanon.

Lebanon has been facing a long-running financial crisis, with the value of the Lebanese pound collapsing and billions of dollars’ worth of deposits lost. The crisis is attributed to the large amount of debt that Lebanon took on since the 1990s, combined with a drop in inflow of foreign currency.