Mounting Criticism over Syrian Government Failure to Manage Economic Crises

Protests in Suwayda, southern Syria, last August (file photo: AP)
Protests in Suwayda, southern Syria, last August (file photo: AP)
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Mounting Criticism over Syrian Government Failure to Manage Economic Crises

Protests in Suwayda, southern Syria, last August (file photo: AP)
Protests in Suwayda, southern Syria, last August (file photo: AP)

Syria's recent budget approval created a firestorm of criticism, questioning the government's ability to handle the economic crisis.

The government claims it is proceeding with its decisions to reduce the deficit, which reached unprecedented levels this year.

The initial allocations for the 2024 draft general budget amounted to SYP35,500 billion, divided into SYP26,500 billion for current spending and SYP9,000 billion for investments. The total deficit amounted to SYP9,404 billion.

Syrian economic expert Amer Shahda wrote on his Facebook page that the government's monetary policy from September 2018 until 2023 led to a profound imbalance in the distribution of national income.

The policy transferred public treasury funds from the state to a small group of financiers, representing 5% of Syrians.

He described them as a highly affluent group that gained wealth through theft, corruption, and control over economic decisions approved by the government, while 95 percent of Syrians were below the poverty line.

Shahda pointed out that the budget deficit in 2011 amounted to SYP547 billion, while the deficit in 2024 will reach more than SYP9,000 billion, in light of mismanagement and poor planning.

The government seeks to alleviate the deficit through a package of decisions that lead to removing subsidies, with successive decisions to raise fuel prices already 20% higher than those of neighboring countries.

Wage increases of 100% in late 2023 were instantly nullified by a 250% price surge and a plummeting lira, bringing the exchange rate to SYP15,000 per dollar.

Furthermore, economic journalist Ziad Ghosn criticized the government's policy, which operates with the mentality of the past, relying on tactics like "gradually lifting subsidies" instead of finding alternatives and new solutions.

Ghosn wrote an article on the Sham FM website, saying that increasing public treasury revenues requires radical changes rather than easy, traditional ones that the government resorts to, such as dramatically increasing the prices of goods and related services.

He explained that finding alternative solutions is unsuitable for a group operating in an environment that does not belong to the future.

Earlier this year, Damascus hosted several meetings and events with the participation of businessmen, chambers of industry and commerce, and government representatives who engaged in open dialogues about economic policies and the need to find ways out of the growing crises.

The General Federation of Trade Unions (GFTU) in Syria held a symposium with government officials to discuss the economic situation and wages.

Average salaries range between SYP200,000 and SYP300,000, equivalent to $13-$20, and according to local media reports, a family of four needs more than SYP10 million to survive, which is about $700.

Journalist Maad Issa said the national labor market is linked to "crises and government decisions" and that every crisis creates new job opportunities regardless of the legitimacy of these opportunities.

In an article in al-Thawra newspaper, Issa explained that the electricity crisis created entire markets for equipment in which many merchants participated without oversight.

Inflation also contributed to the emergence and maintenance of the money counter trade.

The author pointed out that this transformation caused a distortion in the work environment, and every day, Syria is losing dozens of university graduates, academics, doctors, engineers, and craftsmen who chose to leave the country for better opportunities.



Why Is Israel Repeating Claims of Weapons Smuggling from Egypt?

A general view of the Philadelphi Corridor along the border between southern Gaza and Egypt (AFP)
A general view of the Philadelphi Corridor along the border between southern Gaza and Egypt (AFP)
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Why Is Israel Repeating Claims of Weapons Smuggling from Egypt?

A general view of the Philadelphi Corridor along the border between southern Gaza and Egypt (AFP)
A general view of the Philadelphi Corridor along the border between southern Gaza and Egypt (AFP)

Israel said its military had downed a drone carrying weapons that it claimed entered from Egyptian territory, in an incident that experts say reflects ongoing tensions between the two neighbors and may be aimed at pressuring Cairo over its opposition to the displacement of Palestinians from Gaza.

In a statement on Tuesday evening, the Israeli military said it had detected a drone attempting to smuggle weapons from Egypt into Israel around the Paran Brigade, near the border.

The drone was intercepted by Israeli forces. Upon arrival at the scene, security personnel located the drone, four weapons and ammunition, the army said, adding that the seized items were handed over to Israeli police.

The French news agency AFP also cited the statement, noting no casualties were reported.

The incident is the latest in a series of claims by Israel alleging that drones or weapons have entered its territory from Egypt.

In February, Israel said it had shot down a drone crossing from Egypt, and in October, it reported intercepting another drone it said was smuggling arms.

Egypt has not issued an official response to the latest incident, but a senior Egyptian military analyst dismissed the Israeli claims.

Retired General Samir Farag told Asharq Al-Awsat that Egyptian territory is “secure and tightly controlled,” rejecting any suggestion that it is being used to smuggle arms into Israel.

He said the repeated Israeli claims were a “pretext to justify the continued mobilization of the Israeli army and the war on Gaza” amid growing domestic unrest in Israel.

Cairo has been a central mediator in ceasefire talks between Israel and Hamas and has staunchly opposed any plan to forcibly displace Palestinians from the besieged enclave.

Israel has recently seen mounting anti-war protests from current and former soldiers, as well as civilians.

The demonstrations were sparked by an April 9 letter signed by a group of Israeli air force pilots demanding the immediate release of hostages held in Gaza—even if it meant halting the war.

The letter has since been backed by more soldiers, artists, intellectuals and public figures, further fueling pressure on Prime Minister Benjamin Netanyahu’s government to reconsider its war strategy.

Former Egyptian diplomats and analysts have also dismissed Israeli claims that a drone carrying weapons entered its territory from Egypt, describing the move as part of a broader strategy by Tel Aviv to apply psychological and political pressure amid strained bilateral ties.

Ambassador Rakha Ahmed Hassan, a former assistant to Egypt’s foreign minister, said Israel’s allegations are consistent with its use of “hybrid warfare,” which includes military, psychological, and media tactics designed to manipulate other parties.

“These accusations are baseless,” Hassan told Asharq Al-Awsat, adding that their repetition reflects growing internal pressure in Israel—both economic and military—as well as tension in relations with Cairo.

Hassan said Tel Aviv is frustrated with Egypt’s firm rejection of any plan to forcibly displace Palestinians from Gaza and its active diplomatic efforts to rally international support for reconstruction without resettlement.

“Israel is trying to deflect attention by repeatedly targeting Egypt’s role,” he said, pointing to recent Israeli media reports questioning Egypt’s military buildup in Sinai.

Israeli outlets have published reports in recent days alleging an unprecedented Egyptian military presence near the border, which some in Israel have claimed violates the 1979 peace treaty between the two countries.

Dr. Said Okasha, an expert on Israeli affairs at Egypt’s Al-Ahram Center for Political and Strategic Studies, echoed these concerns, saying the drone claim is a reflection of current tensions with Cairo.

“It’s puzzling that Israel would make such statements publicly when there are well-established channels for handling border security issues through joint coordination committees,” Okasha said.

He added that the move appears aimed at undermining Egypt’s credibility as a mediator in the Gaza ceasefire talks while also serving as a distraction for Israel’s domestic audience amid growing protests over the government’s inability to end the conflict.