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A long-awaited draft of the 2022 budget was published Friday by the Finance Ministry ahead of Monday’s Cabinet session, where its proposals will be discussed.

The budget reveals that the Finance Ministry is forecasting a deficit of LL10.26 trillion – 20.77 percent of expenditures – excluding a loan of LL5.25 trillion to Electricité du Liban. Revenues are estimated at LL39.15 trillion, and expenditures at LL 49.42 trillion, leading to a deficit of LL10.26 trillion. Revenues forecasted for 2022 are nearly triple those of 2021, while expenditures increased 2.5 times and the deficit doubled.

In order to attract foreign capital, depositors who bring foreign money will be exempt from taxes for five years according to the budget proposal, while institutions will be mandated to pay salaries through banks. The budget draft contains a proposal to increase the insurance on deposits from LL75 million, previously the equivalent of $50,000, to LL600 million, the current equivalent of $26,000, calculated at the most recent Sayrafa rate. For “fresh US dollar funds,” the deposit insurance increases to $50,000. The document also contains a proposal to waive custom taxes and VAT on solar energy equipment. The exchange rate used for operational expenses is estimated to be between LL15,000 to LL20,000 to the US dollar.