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Officials Exert Efforts to Resolve 2012 State Budget Crisis

Division among cabinet members regarding the 2012 state budget witnessed a breakthrough on Tuesday as ongoing contacts among officials were perceived positively by different government parties.

Health Minister Ali Hassan Khalil, who is loyal to AMAL, Hizbullah Minister of Administrative Development Mohammed Fneish and Energy Minister Jebran Bassil, loyal to the Free Patriotic Movement, have exerted efforts during the past period in order resolve the prolonged crisis paralyzing the state.

Ministerial sources told As Safir newspaper that the consultations the three ministers held with President Michel Suleiman and Prime Minister Najib Miqati led to consensus regarding the matter.

Fneish told the daily that the meetings addressed the importance of activating the government work thus having to resolve the state budget crisis.

“We agreed to set the issues on the right track within its legal basis to end any obstacles,” he stated.

Finance Minister Mohammed al-Safadi proposed a 2012 state budget which includes a 2 percent increase on the Value Added Tax and the interest-revenue taxes.

His proposal would increase the VAT from 10 percent to 12.

The cabinet has failed so far to reach consensus on the 2012 state budget which is affecting the state institutions because of the lack of funds.

Source: Agence France Presse


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