An economist’s review of the 2022 budget draft

The Budget draft law for 2022 that has been submitted to the Council of Ministers, projects   55.2 trillion Lebanese pounds in expenditures with revenues of 39.1 trillion. The need for a 2022 Budget is required sanctioning spending and its approval by the cabinet has been a precondition for negotiations with the International Monetary Fund.  However, the Budget of 2022 reveals most disturbingly, the absence of any profound and comprehensive reforms. It is merely a continuation of past policies with an inflation adjusted factor. [inlinetweet prefix=”” tweeter=”” suffix=””]The Budget does not state objectives for growth, an inflation target and the balance of payments, nor how it can contribute to resolving the crisis.[/inlinetweet] First disturbing sign: multiple fixed exchange rates  The continued provision of applying multiple fixed exchange rates under the 2022 Budget is by itself a setback for reform. A regime of multiple currency exchange rates (MCR) is not only