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Post: The Lebanese parliament passed the 2022 budget without the level desired by the International Monetary Fund.

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Lebanon’s parliament on Monday approved a 2022 budget using an exchange rate for customs revenues below the market value of the Lebanese pound, falling short of economic reforms that would pave the way for a deal with the International Monetary Fund.

The deal with the bank is seen as a crucial first step for Lebanon to start emerging from a three-year financial crisis that plunged most people into poverty and plunged the country into its worst crisis since the Lebanese civil war.

An expert-level agreement between the Lebanese government and the International Monetary Fund in April called on officials to raise revenues to finance a weakened public sector and allow for greater social spending by calculating customs fees at a “reduced exchange rate”.

But Parliament passed a budget that estimated customs tax revenue at £15,000.

On Friday, the market price was set at around 37,000 pounds against the dollar.

Authorities see the approval of a higher exchange rate for imports as an unpopular move in a country that relies heavily on imports.

The budget, approved just three months before the end of this year, estimates government spending at 41 trillion lira, or $1.1 billion at Monday market prices, and revenue at 30 trillion.

Salaries have tripled for all public sector employees, including those in the army and security forces, with many now earning less than $50, due to a 95% devaluation of the lira since 2019.

Source: EuroNews

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