Khazen

Image result for hariri

BEIRUT (Reuters) – Lebanon faces catastrophe if the government does not agree what may be the most austere budget in its history, the prime minister said on Wednesday, urging national unity and saying everyone should be ready for sacrifices if necessary. Prime Minister Saad al-Hariri’s government is finalizing a 2019 state budget expected to follow through on its promise of “difficult and painful” reforms to put the public finances on a sustainable path. The budget is seen as a critical test of its will to enact reforms that economists say are more pressing than ever for an economy that has suffered years of low growth. State finances are strained by a bloated public sector, high debt servicing costs and hefty subsidies spent on the power sector. Small protests over the last two days against cuts have underlined the political minefield facing a government that has put off reforms for years. Some public sector workers went on strike on Wednesday. On Tuesday, retired army officers blocked highways with burning tires to warn against any pension cuts. “What is required from us as a government today is to carry out a budget that may be the most austere in the history of Lebanon,” Hariri told reporters after a meeting of parliament, saying the government must be “sincere” with the people. While Lebanon was not in “a state of collapse”, Hariri said that “if we continue like this we will reach a catastrophe”. Unlike other states that had suffered financial crises such as Greece, Lebanon would have no-one to save it, he added.