Lebanese parliament approves 2020 budget

Lebanese parliament approves 2020 budget
Lebanese lawmakers vote for the 2020 budget at the parliament in Beirut Monday in this photo release from the Lebanese parliament media office. (AP)
Short Url
Updated 28 January 2020

Lebanese parliament approves 2020 budget

Lebanese parliament approves 2020 budget
  • Budget did not include any economic vision, but was limited to numbers
  • Dozens of protesters tried to prevent lawmakers from attending the session

BEIRUT: The Lebanese parliament approved the country’s 2020 budget on Monday, in an unprecedented session that revealed the true extent of the state of confusion in Beirut.

The governments of former Prime Minister Saad Hariri, which drafted the budget, and current Prime Minister Hassan Diab, did not attend the budget debate, with Diab stating his government had “not yet won the confidence of Parliament, and has no right to retrieve the draft budget to study and modify it.”
The session was attended by just 70 deputies out of its 128, and was boycotted by the deputies of the Lebanese Forces and the Phalange parties, and a number of independent members of Parliament (MPs).
Forty-nine MPs approved the budget, from the Hezbollah, Amal, and Free Patriotic Movement blocs and their allies. Thirteen MPs voted against it, including the Future Movement bloc, and eight abstained, including the Democratic Gathering bloc, which is loyal to Walid Jumblatt, leader of the Progressive Socialist Party.
The budget did not include any economic vision, but was limited to numbers. The head of the Parliamentary Finance and Budget Committee, Ibrahim Kanaan, said that it included “an estimate of resources and allocations of funds.”
The budget deficit reached $7.5 billion.
Lebanon is suffering from a decline in its resources and an economic recession as a result of the tight banking restrictions on money transfers in US dollars.
In his diagnosis of financial reality, MP Salim Saadeh said: “I studied the budget numbers and added the debt service at a value of 4 or 5 trillion Lebanese pounds (LBP), and added the electricity deficit at a value of LBP1.5 trillion. The deficit is around $7.5 billion, and gross domestic product deficit is 12.7 percent, which indicates that our situation is very bad.”
He added: “The destruction that hit Lebanon’s economy is caused by the banks, the Lebanese Central Bank and the state treasury. We have a capital control that is stricter than in communist countries, and we now have three different dollar exchange rates with banks, money exchange companies and people.”
Saadeh said that the state was “suffering from a deficit in the trade balance, the balance of payments, the budget, the current account, the dollar reserves in the central bank, economic activity and in the treasury’s ability to borrow. There is also a failure to reform in light of the presence of the protests on the streets and the inability to stabilize the exchange rate of the dollar after we convinced citizens that the price of LBP1,500 for the dollar was permanent.”

BACKGROUND

Lebanon is suffering from a decline in its resources and an economic recession as a result of the tight banking restrictions on money transfers in US dollars. The budget deficit reached $7.5 billion.

During their discussion of the draft budget, MPs made some amendments to it, such as abolishing a clause that exempted sects from the tax on donations. The reduction also included the allocations for nongovernmental organizations, and imposed control over loans and donations in accordance with the constitution-sensitive mechanism and the Public Accountancy Act.
Hezbollah objected to any additional increase in electricity service prices provided by generators to citizens.
Six state ministries were canceled in the draft budget because they were no longer present in the new government.
The number of speakers permitted to address the session was cut from 21 to six, due to security concerns surrounding Parliament. This led to the discussion of the draft budget and its approval within three hours, despite originally expected to take two days.
Outside, protesters and security forces clashed, with firecrackers and stones thrown at the barricades erected to prevent the storming of the session. The Corniche El-Mazraa road in Beirut was also blocked of, and security forces responded with rubber bullets and tear gas.
The Lebanese Red Cross declared four people had been wounded and taken to hospitals in the capital, with eight other minor injuries recorded.


Yemen’s government vows to mitigate effects of Houthi terrorism designation

Yemen’s government vows to mitigate effects of Houthi terrorism designation
A military vehicle is stationed on the tarmac of Yemen’s Aden airport. Yemen says the Stockholm Agreement has failed to bring peace to the country. (File/AFP)
Updated 20 min 22 sec ago

Yemen’s government vows to mitigate effects of Houthi terrorism designation

Yemen’s government vows to mitigate effects of Houthi terrorism designation
  • International community urged not to surrender to ‘blackmailing and intimidation’ 
  • Stockholm Agreement has failed to bring peace, Yemen PM said

AL-MUKALLA: Yemen’s prime minister has vowed to address any impact on humanitarian assistance or the remittances of citizens abroad following the US move to designate the Iran-backed Houthis as a terrorist organization.

Maeen Abdul Malik Saeed also urged the international community not to surrender to “Houthi blackmailing” and intimidation.
Saeed defended his government’s strong support of the designation during a virtual interview with foreign journalists sponsored by the Sanaa Center for Strategic Studies.
He said that his government had formed a committee to handle any effects on the delivery of humanitarian assistance inside Houthi-controlled areas and the remittances of Yemenis abroad.
“We are determined to prevent any impact of the decision on the Yemenis. We have formed a committee to mitigate effects of the decision,” he said.
When the US announced its intention to designate the Houthi movement as a terrorist organization last week, Yemen’s government quickly urged the US administration to put the decision in place, predicting it would stop Houthi crimes and their looting of humanitarian assistance, and would smoothe the way for peace.
Referring to the impact of the US designation on peace talks between the Yemeni government and the Houthis, Saeed said that the decision would not undermine peace efforts. He said that the Houthis would be accepted as part of the Yemeni political and social spectrum when they abandoned hard-line ideologies and embraced equality and justice.

The Yemeni government agreed to go to Stockholm for reaching a solution to stop fighting and saving the city. This model has failed.

Maeen Abdul Malik Saeed, Yemen’s prime minister

“This is an important pressure card on them and a real definition of them,” he said, adding that the Yemenis would not allow the Houthi movement to rule them.
“Yemen would not be ruled by a racist and terrorist group,” he said.
Formed under the Riyadh Agreement, Yemen’s new government’s ministers narrowly escaped death on Dec. 30 when three precision-guided missiles ripped through Aden airport shortly after their plane touched down.
The government accused the Houthis of staging the attack, saying that missile fragments collected from the airport showed that they were similar to missiles that targeted Marib city in the past.
The prime minister said that the Yemeni government had offered many concessions to reach an agreement to end the war. It had agreed to engage in direct talks with the Houthis in Stockholm in 2018 despite the fact that the Yemeni government forces were about to seize control of the Red Sea city of Hodeidah. However, the Stockholm Agreement had failed to bring peace to Yemen, he said.
“The government forces were about to capture the city within five days maximum. The Yemeni government agreed to go to Stockholm for reaching a solution to stop fighting and saving the city. This model has failed,” Saeed said.
In Riyadh, Yemen’s president Abed Rabbo Mansour Hadi on Friday appointed Ahmed Obeid bin Daghar, a former prime minister and a senior adviser to the president, as president of the Shoura Council.
Hadi also appointed Ahmed Ahmed Al-Mousai as the country’s new attorney general.
Fighting continues
Heavy fighting between Yemeni government forces and the Houthis broke out on Sunday for the third consecutive day in contested areas in the districts of Hays and Durihimi in the western province of Hodeidah. Official media said that dozens of Houthi rebels and several government troops were killed in the fighting and loyalists pushed back three assaults by Houthis in Durihimi district.
In neighboring Hays, the Joint Forces media said on Sunday that the Houthis hit government forces with heavy weapons before launching a ground attack in an attempt to seize control of new areas in the district.
The Houthis failed to make any gains and lost dozens of fighters along with several military vehicles that were burnt in the fighting, the same media outlets said. Heavy artillery shelling and land mines planted by the Houthis have killed more than 500 civilians since late 2018, local rights groups said.