Billions needed, but no plan: Lebanon’s social spending crisis deepens

Report by Lea Fayad, English adaptation by Karine Keuchkerian

After everything Lebanon has been through, poverty has tripled over the past five years, unemployment stands at 45%, and the cost of reconstruction exceeds $11 billion.

Yet, instead of expanding social programs, Lebanon has slashed the social and health protection budget — from $6.1 billion in 2017 to just $1.3 billion in 2024.

What is worse, most of that money goes to public sector pensions and end-of-service benefits — covering just 2.5% of the population.

Even the social programs funded by international donors, which are helping people stay on their feet, face constant threats of suspension.

This reality — now in urgent need of change — was outlined in a report by the Institut des Finances Basil Fuleihan. However, the question remains: where can the government obtain the necessary funding?

This comes at a time when establishing a social safety net is a key condition set by the International Monetary Fund (IMF) for any agreement with Lebanon — based on the need for a clear mechanism to protect the most vulnerable.