Managing State without budgets is one of the reasons for the collapse!

Managing State without budgets is one of the reasons for the collapse!

| Friday 05 August 2022

“Akhbar al-Yawm” agency

Abu Sleiman to "Akhbar al-Yawm": multiple exchange rates lead to economic distortions

When one of the Lebanese leaders said that "we have to teach major capitals such as Washington and London how to manage a state without a budget because Lebanon is coping with all situations". It was in January of the year 2019, a few months before the Great Collapse. As it turned out that Lebanon did not cope, that is because no country can survive and continue without a transparent, clear and fair budget.

Today, 3 years after the collapse, the reformist economic files are many with the approval of the budget for the year 2022, where until now it is unlikely to be approved before the end of the Tenure of President Michel Aoun.

In this regard, economist Walid Abu Sleiman comments: "the upcoming budget may include harsh tax measures", saying: the council considers that the government should clarify some things before approving the budget, and the government seems to have not cooperated".

Abu Sleiman adds: but the deadlines are imminent, as the council has only one and a half months left before it turns into an electoral body.

In response to a question, Abu Sleiman stresses that the approval of the budget should be after the unification of the dollar exchange rate against the Lebanese pound.

What is this price? Abu Sleiman answers: today, Sayrafa platform sets the adopted price. He says: setting the exchange rate in the budget at 14 thousand lira - as we have heard in recent days - does not solve the problem and does not lead to social justice, asking: How can a taxpayer who receives his salary on the basis of 8000 lira pay taxes on the basis of 14 thousand? Explaining: the multiplicity of exchange rates leads to economic distortions, and does not help the economy to rise and grow.

Here, he calls for the need to study the budget figures carefully, because most of its imports come from taxes, in contrast, state purchases on the basis of dollars of the parallel market or Sayrafa, warning that the approval of the budget in this form will lead to further economic contraction and does not open the way for the introduction of money into the country.


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