Finance Minister Calls for Gradual Approach to Budget Reform Through Consolidating Ministry and Institution Budgets

Finance Minister Yassine Jaber received a delegation from the European Union Mission in Lebanon, headed by Cyril Duvalin, Deputy Head of Cooperation at the Mission, including European Commission economic expert Jimmy Bessoussi, alongside a delegation from the SIGMA program of the Organisation for Economic Co-operation and Development (OECD). The meeting was attended by Director General of Finance Georges Maarawi, and advisors Zeina Kassem and Claudine Korki.

The meeting focused on presenting the stage reached by the SIGMA project supporting public budget management reform, which was officially launched last month at the Government Palace with funding from the European Union. The delegation presented the key directions of the budget management reform strategy currently being prepared, foremost among them linking financial appropriations to public policies and government priorities, and reducing budget dispersion through a proposal that public institutions affiliated with each ministry consolidate their budgets into the ministry's budget, so that a single unified budget including the ministry and its affiliated public institutions is submitted to the Ministry of Finance.

The discussion also addressed adopting spending ceilings for ministries determined by the Ministry of Finance based on a medium-term fiscal framework, with each ministry responsible for distributing its ceiling internally according to its priorities. This approach will initially be applied to six model ministries, accompanied by a training and support program for the Budget Directorate and the relevant ministries.

It was confirmed that cooperation with the SIGMA program in the field of budget preparation has been ongoing for nearly two years, and emphasized the importance of building on this experience and identifying the obstacles that prevented achieving the desired results, to avoid them in the new phase. The delegation explained that the previous phase lacked the necessary funding and capacities to support and train ministries, which is now available thanks to European funding, along with the need for clear guidance and political-level support.

Jaber affirmed his support for the reform path, calling for a gradual and realistic approach that takes into account administrative capacities and the existing legal framework, and achieves tangible results in the short term rather than limiting efforts to long-term studies and plans. He proposed, as a first practical step, that model ministries initiate the formation of internal working teams comprising various directorates and affiliated institutions, to coordinate their needs and unify their budget requests, and to start this work earlier within the current budget calendar without the need for legislative amendments. He requested consultation with these ministries and with the Public Finance Directorate to determine what can be implemented immediately, noting the importance of enhancing the capacity to estimate and forecast revenues, as it is a fundamental pillar in preparing a sound budget.

It was agreed that the team would present the draft budget management reform strategy to the minister next December, paving the way for discussing it and adopting its executive steps.