The government pledges to increase wages, but the minister is cautious: study the cost first

Sabine Owais wrote in “An-Nahar”:

Retirees are awaiting a new meeting with the government next February, after the promise to pay six additional salaries in instalments, four of which in February and two in March. This raises important questions that must be addressed before the first payment is due, including: What is the source of this money? If it is available, why was it not included in the budget as the government promised? More importantly, will this push be accompanied by reform steps and measures in the public sector, especially the formal education sector?

In this context, a distinction must be made between current workers and retirees, such as retired military personnel whose compensation has diminished, and formal education professors, after the approval of the ranks and salaries series in 2017, as well as between those who are entitled to correction and those who benefit from it at the expense of productivity.

The Civil Service Council had prepared a project to correct salaries and wages in the public sector and for formal education teachers, and held several meetings with the ministerial committee in charge of this file for follow-up. The project is scheduled to be presented in its final form to the Council of Ministers within a maximum period of six weeks for approval.

The strange thing is that there are no official estimates of the cost of this increase to the treasury, and the information indicates that the Expenditure Directorate in the Ministry of Finance had not prepared its estimates, and has begun to do so now after the government’s decision.

Sources state that the decision to pay the increases was taken in response to pressure from the street, and not based on a study of its impact on public finances. Perhaps this is what prompted the Minister of Finance to respond sharply during his speech to the representatives in the context of the government’s response to parliamentary interventions. He described the matter as “arbitrary,” indicating that the government cannot make decisions in this way, and revealing that “no one knows how much it costs!” He asked: “We have witnessed the approval of the previous series of ranks and salaries, so where do you want to take the country?”

He stressed that any arbitrary decision is tantamount to a defect and cannot be implemented, calling for giving the ministry more time.

He asked the retirees to wait until February to prepare the schedules, evaluate the cost, and search for sources to finance it, especially since the IMF mission will arrive on February 9, and the government must have a response to this matter.

Also, Jaber refused to commit to any pledge before studying the financial impact and cost.