The budget proposal which has been delayed for weeks will be discussed by the government, and later submitted to the Parliament for final approval.

Expenditures are expected to rise nearly to $12.6 billion in 2010 from $11.4 billion in 2009 as all ministries have requested to increase their budgets, specifically ministers of health, agriculture, education, interior and defense, and energy. Expenses will also increase with the expected rise in Électricité Du Liban's (EDL), and debt service payments.

The government will also study the Ministry of Finance’s proposal to raise the Value Added Tax (VAT) to 15 percent from ten percent currently.

Increasing the VAT  to 12 percent has been delayed in the past two years due to the tough living conditions in the country.

A large number of trade and public unions, and economic bodies rejected the proposal to raise the VAT. They all agreed that increasing the tax to 15 percent “will, in line, increase the proportion of families living below the poverty line.”

Businessnews lists some of the opinions:
Beirut Merchants Association:
Nadim Assi, the head of the Beirut Merchants Association, said that traders and citizens “cannot endure such an increase.”

Workers Union:
Ghassan Ghosen, the head of the General Confederation of Workers, said that the Union will stage protests in the streets against the decision “if approved.” He said such a decision is “not a joke” and it “will affect poor families, and low income workers.”

Teachers Union:
Hanna Gharib, the President of Union of High School Teachers, said that the union “rejects this decision which affects middle income people.” “All unions should consolidate against such a decision,” he said. Hanna said that the government should “look for other sources of funding other than increasing taxes.”

Consumers Lebanon:
Zuhair Berro, president of Consumers Lebanon, said “that the association is against increasing the taxes even by one percent.” “Why should consumers with low income always bear tax burdens?” he said.

Union of the Syndicates of Taxi Drivers and Transport Agencies:
The Union said it opposes any raise in the VAT. The Union said it will organize protests against such a decision.

Union of Farmers:
The Union said it refuses the proposal to increase the VAT which will “deteriorate and worsen living conditions of farmers.”