The designated Prime Minister Najib Mikati will participate in the parliamentary Finance and Budget Committee session next Thursday to discuss the draft of the public budget for 2022. This is an attempt to establish a balance between what the state seeks to collect in revenues from the difference in customs dollar prices and services being charged at the official rate (1,500 LBP) instead of the market rate which reached 30,000 LBP yesterday, and the salaries of its employees.
The session was originally scheduled for Monday to address certain issues related to the 2022 public budget project and the proposed financial legislations, with the presence of representatives from the government and the Central Bank of Lebanon. However, the session was postponed due to the infection of the Finance and Budget Committee Chairman, MP Ibrahim Kanaan, with the coronavirus.
Financial sources told "Asharq Al-Awsat" that the importance of this session lies in discussing a desired balance between the expected state revenues after increasing some of the tariffs included in the budget, and the salaries of public sector employees, whose value has deteriorated significantly. They pointed out that "the government cannot increase the salary scale or change the salary ladder, but it will compensate for that with a series of incentives like social assistance and supplements, such as transportation allowances, to enable employees to continue performing their duties." This initiative addresses part of the demands from the public sector, which started a strike two weeks ago.
The sources mentioned that parliamentary and government authorities "have become convinced that there are pricing rules for the lira different from before, as salaries cannot remain at an exchange rate of 1,500 LBP per dollar amid rising prices for services and living needs, and that fees, primarily customs dollars, will increase upon the approval of the budget." However, they clarified that the pricing of customs dollars "will not reference the Sayrafa platform belonging to the Central Bank, but rather might settle around the 8,000 LBP mark or close to that, with an increase in social benefits and salary supplements in an attempt to create a balance between purchasing power and prices, especially since it is expected that budget revenues will quadruple."
The previous parliament failed to approve the public budget submitted by the government at that time due to time constraints, and the new parliament is focusing on passing it as a priority amid current conditions.
Amid the salary crisis of public sector employees, Mikati discussed with Minister of Finance in the caretaker government, Youssef Khalil, the issue of paying salaries for public sector workers. They agreed on taking appropriate measures to ensure timely salary payments.
On another note, employees of the Payments Directorate at the Ministry of Finance announced their return to work, stating: "We have never sought to exploit salaries and wages as a means of pressure to improve our situation specifically or the situation of employees in general." They confirmed the suspension of the strike "this time only to finalize the salaries and wages for the month of July and the social assistance for March and April without any transactions or other remittances."
They called on "all concerned parties to resolve the dilemma of ensuring the cost for employees to attend work at least fifteen days a month and to support their families."
