The Lebanese government is moving in a minefield as it attempts to strike a balance between austerity measures to avoid financial and economic collapse and the growing popular objections that absolutely reject any actions that would affect the poor and the middle class.
In this context, the government is trying to resolve the budget deficit by reducing the budgets of ministries and by working towards decreasing squandering and corruption, rampant in state departments for decades.
However, the General Labor Union, a large number of trade unions and retired military personnel anticipated the adoption of the budget with various moves, ranging from opposition to demonstration and general strike.
Member of the Strong Lebanon bloc, MP Mario Aoun, told Asharq Al-Awsat that there was an understanding between President Michel Aoun and Prime Minister Saad Hariri that no taxes or measures would be imposed on the middle and poor classes.
“Everyone understands the fragility of the current situation, and that any inaccurate steps will lead to a complete collapse at the internal level. Therefore, decisions were limited to the cancellation of customs exemptions, the imposition of fees on distinctive car plates and austerity measures on high-salary holders and some unnecessary allocations,” he said.
Article 55 of the budget currently examined by the cabinet provides for the imposition of a monthly deduction of 3 percent of the salaries and wages of the retired military. Article 58 also provides for the abolition of military equipment for retired military and the families of late retired military officers.
This has led some officers to take to the streets and threaten to implement escalatory measures in the event of the adoption of these articles.
Despite all rumor about the reduction of the salaries of public sector employees by 15 percent - which caused great resentment among the Lebanese – information revealed that Minister of Finance Ali Hassan Khalil did not include in the proposed budget any such item in this regard.
The opposition - currently represented by the Kataeb Party and other independent deputies - is not positive about the steps taken by the government in the budget file.
In remarks to Asharq Al-Awsat, Kataeb Party MP Elias Hankash said that the street moves “reflect the Lebanese people’s lack of confidence” in the political class, which “has employed 10 thousand people before the elections, despite taking a decision to stop public employment.”
The Lebanese government continued on Monday consultations over the 2019 state budget, in parallel with strikes in some public institutions and independent professions and the closure of the Central Bank (Banque du Liban).
While information indicated that the cabinet postponed discussions over Article 60, which provides for the approval of the Ministry of Finance on the budgets of public institutions, Minister of Industry Wael Abu Faour, said the file would be resolved in two or three sessions this week.
