Beirut, 12 November 2025--The Arab region loses an estimated $112 billion every year due to inefficient social expenditure-equivalent to about 3.2% of the regional gross domestic product (GDP). This staggering loss underscores the urgent need for smarter, more equitable, and fiscally sustainable public spending to accelerate progress towards the Sustainable Development Goals (SDGs).
Against this backdrop, the United Nations Economic and Social Commission for Western Asia (ESCWA) and the United Nations Children's Fund (UNICEF) kicked off this morning the first Arab Public Finance and Budgeting Forum, under the theme "Enhancing Social Sector Expenditure and Fiscal Sustainability", at the UN house in Beirut.
The two-day Forum brings together ministers of finance, social development and planning, along with senior government officials, experts, and development partners from across the Arab region and abroad, to exchange experiences and explore innovative fiscal and policy solutions that enhance efficiency, equity, and fiscal resilience.
In his opening remarks, Lebanese Minister of Finance Yassine Jaber affirmed his trust in the ability of the Arab region to overcome its crises and build a new social contract based on restoring citizens' trust in State institutions. "We can manage public funds with fairness and efficiency," he emphasized, stressing the need to improve social spending, guide resources towards productive sectors, and invest in human capital to build more resilient and fairer economies. Jaber voiced his hope that the forum would be a practical step towards increasing Arab cooperation in social spending and laying strong financial and economic foundations for a stable and prosperous future for the region.
The Forum builds on findings from the Social Expenditure Monitor (SEM) developed by ESCWA, UNICEF, and the UN Development Programme (UNDP). The Monitor reveals that most Arab countries allocate a smaller share of their budgets to social sectors than the global average and face persistent inefficiencies in public expenditure. Weak monitoring systems and fragmented programmes further undermine efforts to ensure equitable access to essential services.
"These shortcomings are not mere economic challenges," Under-Secretary-General and Acting Executive Secretary Mourad Wahba emphasized, "they are a test for our social contracts and the ability of our Governments to uphold justice, provide opportunities and strengthen resilience to crises". He hoped that the practical budgeting tools that would be presented by ESCWA and UNICEF during the Forum would help policymakers in their difficult mission of transforming social expenditure into investments in the region's future.
Amid rising debt-service burdens and constrained fiscal space, discussions will focus on rebalancing public spending priorities and enhancing fiscal governance through data-driven approaches. Participants will discover advanced policy tools, including the SEM dashboard, a macro-fiscal modelling and forecasting platform, Public Finance for Children, and the Integrated Budget Intelligence Toolkit, to improve evidence-based decision-making and strengthen budget accountability.
In a recorded message, UNICEF Regional Director for the Middle East and North Africa Edouard Beigbeder stressed that, together, ESCWA and UNICEF were demonstrating what collaboration in the UN system was meant to look like: complementary strengths, shared strategic vision, and a joint commitment to supporting member States in designing and financing systems that protect children, empower youth, and promote inclusive growth. He added that this partnership not only made today's event possible but would also continue to serve as a platform for innovation, research, and policy support to Governments across the region.
The Forum also aims to translate the Sevilla Commitment and the outcomes of the Second World Social Development Summit into concrete regional action by building institutional capacities, promoting transparent and inclusive budgeting, and charting a regional roadmap for social sector financing and fiscal sustainability.
