COM Approves the 2025 Budget by Decree

The Council of Ministers (COM) approved on March 6, 2025 the 2025 budget by Decree. The budget foresees revenues and expenditures to be balanced at 445.2 Tn LBP.

On the expenditure side, capital expenditures stood at 11.5% of total expenditures, while current expenditures stood at 89.5%. Of the latter, 54.4% is spending on salaries and benefits and 14.2% on goods and services. On the revenues side, non-tax revenues are estimated at 18.8% of total revenues and tax revenues at 81.2%. Out of total tax revenues, VAT and excise taxes constitute 56.3%, customs duties 20.3%, and taxes on income and profits 12%.

In addition, the budget envisions a primary surplus of 7%; and estimates GDP in 2025 to reach $27.8 Bn, inflation and growth to be at 4.5% and 1.2% respectively, and the exchange rate to remain stable at 89,500 LBP.

Four criticisms were levied at the passing of the 2025 budget. The first is that it should have been approved by law in parliament. Second, it is devoid of any reform and recovery plan. Third, it is also devoid of any funds for reconstruction. And, fourth, it is replete with higher excises and fees. One could argue, however, that speed was essential for regularizing public expenditures, hence the decree; reform and recovery plans need time to be assessed and formed, and would likely be part of the next budget; reconstruction needs would be relegated to a fund established for that purpose; and COM delegated to the Minister of Finance to review all higher fees and excises and amend them if warranted.

Expenditure by Functional Administration: 2025 Budget

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