Spending cut by $1.3bn in Lebanon\'s draft budget

Lebanon's Finance Minister Mohammed Safadi has submitted the draft general and auxiliary budgets for 2013 to the cabinet. In his latest amendments, spending has been cut by two trillion Lebanese Pounds ($1.3bn), falling to 21.23 trillion (£14.1bn), with a deficit of 5.25 trillion ($3.5bn), according to the ceiling set by cabinet. Safadi also released a statement expressing surprise at reports of an exodus of Saudi money from Lebanon's banks, saying: "Lebanon's banking system is fundamentally one that is based on the free and confidential movement of capital. Clients are therefore free to do as they please with their money." He added: "There is no financial, security or political reason for Saudi money, either public or private, to be taken out of Lebanon." Stressing that the relationship between Lebanon and Saudi Arabia is marked by "mutual trust," the minister said: "[Saudi] supports the political, security and financial stability of Lebanon and has proven that at critical points in our contemporary history."