Salameh Says State Treasury Can't Endure New Wage Scale without Reforms
Central Bank Governor Riad Salameh stressed on Wednesday that the state treasury will not endure the endorsement of the new salary scale without causing a turmoil in the Lebanese economy.
“The state's treasury will be able to cover only 24 percent annually of the new wage scale costs,” Salameh said in comments published in al-Liwaa newspaper.
He pointed out that the state should fortify its resources and end squandering by implementing reforms that create financial surplus.
However, Salameh expressed optimism over the matter if the stability was maintained locally and the economy revived.
The joint parliamentary committees failed again on Tuesday to secure the funds and refer the new wage scale to the parliament for endorsement.
The main point of contention is the Value Added Tax.
The Syndicate Coordination Committee had warned of escalation in the protests, of an open-ended strike and of boycotting (the correction of) official exams.
Former Prime Minister Najib Miqati's cabinet endorsed in 2012 a new salary scale for public employees ending a long dispute that had prompted the SCC to hold several sit-ins and strikes.
President Michel Suleiman signed the decree mid-June 2013 and it was referred to the joint parliamentary committees for further scrutiny.
The wage increase will be retroactive from July 1, 2012.
The state treasury will have more than $1.2 billion to cover as there are over 180,000 public sector employees including military personnel.
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