Lebanon’s failure to produce and audit public finance accounts has rendered the state’s fiscal management increasingly opaque, depriving lawmakers of the tools necessary to exercise proper oversight. The parliament is left in the dark, unable to scrutinize the allocation of resources or ensure that public funds are used efficiently. The continued absence of transparent public accounts raises critical questions about the country’s fiscal sustainability and governance.

This chronic dysfunction stems from a long-standing pattern of delay and neglect. The government’s failure to submit accounts to the Audit Bureau has become the norm. Meanwhile, tax and fee collection has suffered as the treasury remains incapable of enforcing compliance despite repeated efforts and substantial financial investments in restructuring the ministry of finance.

Lebanon’s fiscal opacity is a symptom of entrenched corruption. Without confidence in the fairness of the tax system, compliance rates plummeted, creating a vicious cycle of non-payment and declining revenues. Lebanon’s tax apparatus has become a vehicle for arbitrary fee hikes and informal levies, enriching corrupt officials while placing additional burdens on citizens. Tax and customs evasion have become routine. Successive governments have failed to address these structural problems, leaving future generations saddled with public debt obligations incurred through mismanagement and fraud.

As Lebanon prepares its 2025 state budget, there is an urgent need to restore fiscal discipline and transparency. Previous budgets have been marred by flawed accounting practices, including the arbitrary application of multiple exchange rates. The government’s continued reliance on fees in exchange for services that are not provided. At times, citizens have been fined for failing to meet obligations during periods when state offices were closed, further underscoring the dysfunction in the system.

One particularly glaring inefficiency is the ongoing fiscal stamp crisis, which has created artificial shortages of stamps and driven up costs. A transition to digital stamps, as proposed by LIMS, could introduce much-needed competition, lower production expenses, and eliminate market distortions. If implemented correctly, digital stamps could also serve as a tool to combat corruption by enabling a transparent tracking system and reducing opportunities for fraud. However, for such a system to succeed, it must be subject to competitive tendering to prevent monopolistic control, an initiative highlighted in its APPLE C program.

• Collapse Of Public Finances: Transparency Is The Safe Exit Door From The Impasse. December 18, 2024: Aliwaa, Article (AR)
• Stamp Crisis: Digital Transformation Is The Solution… And Wise Management Is The Foundation. December 24, 2024: Lebanon24, Article (AR)