Lebanese Parliament Approves Opening of Funds for Public Sector Salaries Despite Opposition Boycott
Beirut, June 19, 2023 – The Lebanese parliament has approved two laws to open financial appropriations in the 2023 budget before its ratification, in order to pay salaries and compensations to public sector employees, military personnel, and retirees. The legislative session took place today, with more than 70 deputies present out of the total 128 members of Parliament, despite the boycott by representatives of the opposition forces.
The official Lebanese National News Agency reported that the opposition blocs have deemed the legislative session “unconstitutional” due to the vacancy of the presidency of the Republic. They argue that Parliament cannot legislate or approve appropriations in a budget that the government has not referred to it.
Caretaker Prime Minister Najib Mikati had warned last Tuesday that his government would not be able to pay public sector salaries at the end of this month if Parliament did not approve the additional appropriations for employee wages, despite the availability of liquidity in the treasury.
In April, the government had already approved a four-time increase in the salaries of public sector employees, in addition to the two salaries that were previously approved, along with an increase in the transportation allowance. These salary increases were implemented due to the collapse of the exchange rate of the Lebanese pound against the dollar, which has plummeted from about 1,500 at the end of 2019 to about 94,000 currently.
During the legislative session, Mikati assured that the funds for the two law proposals are secured and that the 2023 budget is ready. He announced plans to call for successive government sessions to approve the budget, with the Ministry of Finance expected to send the final draft to the government before the end of June for discussion.
It is worth noting that Parliament had approved the 2022 budget last September, following nearly nine months of government spending without an approved budget. This was done in accordance with the “twelve-year rule,” which allows for the current year’s expenditures to be spent in the absence of an approved budget.
Lebanon has been in a presidential vacuum since November, with the end of former President Michel Aoun’s term on October 31. Despite 12 electoral sessions, the last of which was held on the 14th of this month, Parliament has been unable to elect a president due to political divisions.
The presidential vacuum comes at a time when the country is being governed by a caretaker government, while Lebanon continues to grapple with a severe economic and financial crisis. The World Bank has ranked Lebanon’s crisis as one of the worst in the world since the mid-19th century.
Despite the opposition’s boycott, the approval of the opening of funds for public sector salaries is seen as a crucial step in addressing the financial challenges faced by Lebanon’s workforce.
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The Central Bank’s reserves. Mikati emphasized the urgent need for these funds to ensure the livelihoods of thousands of employees and retirees who rely on their salaries and pensions for daily expenses.
The approval of the opening of funds was met with mixed reactions from different political factions. Supporters of the move argue that it is a necessary step to address the pressing financial crisis and prevent further economic deterioration. They emphasize the importance of prioritizing public sector salaries and ensuring the stability of the workforce.
On the other hand, opponents, mainly from the opposition forces, criticize the government’s decision to bypass the normal budgetary process. They argue that this is a violation of constitutional procedures and undermines the principle of separation of powers. They believe that opening financial appropriations before the budget’s ratification sets a dangerous precedent and jeopardizes the integrity of the country’s governance.
Despite the opposition’s boycott, the parliamentary majority, consisting of various political groups, managed to pass the laws. They argue that these exceptional circumstances require unconventional measures to address the financial crisis and provide immediate relief to the public sector employees who have been struggling for months.
The approval of the opening of funds is seen as a temporary solution to the larger economic challenges facing Lebanon. The country has been grappling with a severe financial crisis for years, which has been exacerbated by political instability, corruption, and the impact of the global COVID-19 pandemic. The public sector has been particularly affected, with delays in salary payments and a lack of resources to cover basic expenses.
The Lebanese government and Parliament continue to face immense challenges in addressing the deep-rooted economic crisis. The approval of the opening of funds for public sector salaries highlights the urgency of finding long-term solutions to stabilize the economy, attract foreign investments, and tackle corruption. It also underscores the need for inclusive and transparent governance that restores public trust and ensures the fair distribution of resources.
It is disheartening to see the Lebanese parliament disregarding the opposition boycott and approving laws for the 2023 budget and salary payments. This move further deepens the divide within the country and hinders any potential progress towards stability and prosperity. It is crucial for all parties to engage in meaningful dialogue and put the country’s interests first, rather than pushing their own agendas.