No Result
View All Result
Monday, June 5, 2023
26 °c
Tripoli
24 ° Tue
22 ° Wed
22 ° Thu
24 ° Fri
  • Advertising
  • Contact
LibyaHerald
 
  • Home
  • Libya
  • Business
  • Opinion
  • Magazine
  • Advertising
  • Login
  • Register
SUBSCRIBE
  • Home
  • Libya
  • Business
  • Opinion
  • Magazine
  • Advertising
  • Login
  • Register
No Result
View All Result
LibyaHerald
No Result
View All Result
Home Business

Salvation government backtracks and allays fears of austerity policies affecting salaries

bySami Zaptia
January 11, 2015
Reading Time: 3 mins read
A A
12
SHARES
50
VIEWS
Share on FacebookShare on Twitter

By Libya Herald reporter.

The  contending governments of Libya are struggling to cut spending in view of falling revenue (Photo: Sami Zaptia).
The contending governments of Libya are struggling to cut spending in view of falling revenue (Photo: Sami Zaptia).

Malta, 11 January 2015:

In a major backtrack on earlier announced economic policy, the Salvation Government of Libya, unrecognized . . .[restrict]by the international community, allayed fears today that its austerity plans and cuts in state spending, in response to Libya’s dire economic crises, would involve any cuts to state salaries.

The declaration comes on the back of statements by both the recognized and unrecognized governments intending to introduce some austerity measures to make-up for the anticipated deficit in 2015 as a result of a steep fall in Libya’s oil production and an equal fall in world crude oil prices.

The announcement today seems to be a backtrack by the Salvation Government which had announced on 6 January that it was planning to suspend planned salary increases and the payment of any benefits to government officials, and enforce the use of national IDs in paying government salaries. It had also announced that it was planning to stop the payment of the family bonus as well as to remove subsidies on fuel and electricity.

RELATED POSTS

Libyan state expenditure was LD 127.9 billion in 2022, up LD 42 billion on 2021: latest CBL stats

The Libyan Post-Oil Era: The Challenges and Opportunities of Energy Transition

“The decline in oil production to around 240,000 b/d, a fall of oil prices and increased spending have caused a massive budget deficit,” GNC spokesman Omar Hemadan had said at a press conference just after his government’s announcement. Asking Libyans to be patient, he had said that there could be no more money spent on salaries. “We are at war” he had said, and money had to be spent on munitions.

The move by the unrecognized Salvation Government in Tripoli had mirrored that of the internationally recognized government in Beida, faced with the same spending headaches. At its first meeting of the new year in Beida six days earlier, it had agreed as part of its austerity efforts to cut spending on the needs of displaced Libyans and reduce the number of attachés at Libya embassies around the world.

The economic crisis in Libya has become so large and obvious that even religious figures had intervened. By coincidence (or possibly not), Sheikh Sadik Al-Ghariani, who is recognised as Grant Mufti by those in power in Tripoli but no longer by the House of Representatives in Tobruk and the government in Beida, called on Hassi to stop paying salaries to anyone not turning up to work, cut the salaries of higher paid officials and end the system whereby some government employees were drawing more than one salary. He also demanded an end to bonuses for government employees.

The Central Bank of Libya (CBL) renewed its call in December for the use of the National ID Number as the only means for state employees to access their salaries. The CBL had said that the use of the National ID Number was ‘’key to cutting the state deficit’’.

State-sector wages in Libya have ballooned totally out of control. In 2010, for example, the state’s wages bill was only LD 8 billion. Next year it is expected to be around LD 24 billion. Fuel subsidies, which are also targeted by both governments for reform, are thought to have reached LD 8 billion in 2014.

The CBL has been trying to take a neutral position between the two governments, paying out only state-sector salaries and costs and for subsidies. It has not, supposedly, being paying for any projects or any military costs other than wages.

It will be recalled that in September 2013 the then government of Prime Minister Ali Zeidan had announced that public sector wages would be increased by 20 percent as part of a plan to remove subsidies on commodities. [/restrict]

 
Tags: austeritydeficiteconomyoilSalvation Governmentwages
Share5Tweet3Share1

Related Posts

On National Information Technology Day, the mini-satellite project CubeSat was launched
Business

On National Information Technology Day, the mini-satellite project CubeSat was launched

June 4, 2023
Ministry of Industry provides support to the Industrial Research Centre
Business

Ministry of Industry provides support to the Industrial Research Centre

June 4, 2023
Benghazi Turkish Trade Exhibition postponed to 12-15 June
Business

Benghazi Turkish Trade Exhibition postponed to 12-15 June

June 3, 2023
HB Group opens Apple authorised I-Shop reseller in Tripoli’s Siyahia
Business

HB Group opens Apple authorised I-Shop reseller in Tripoli’s Siyahia

June 3, 2023
SPARK partners with Hive and Assaraya in Benghazi to implement training programme
Business

SPARK partners with Hive and Assaraya in Benghazi to implement training programme

June 2, 2023
REAoL opens Benghazi office – to open office in south soon
Business

REAoL opens Benghazi office – to open office in south soon

June 1, 2023
Next Post

Libyan airlines flying into regulatory storm

New Canadian ambassador for Libya

New Canadian ambassador for Libya

 

Advertise on LibyaHerald

Reach thousands of our site visitors daily

240 x 400px

Advertise Here
ADVERTISEMENT

Top Stories

  • State recognised militia and Libyan Army clash in central Tripoli

    State recognised militia and Libyan Army clash in central Tripoli

    244 shares
    Share 98 Tweet 61
  • HB Group opens Apple authorised I-Shop reseller in Tripoli’s Siyahia

    68 shares
    Share 27 Tweet 17
  • Members of illegal organizations given imprisonment and death sentences by Misrata Criminal Court

    56 shares
    Share 22 Tweet 14
  • Sirte Oil Company’s smart fields give it higher efficiency, more accurate real-time data for timely decisions

    49 shares
    Share 20 Tweet 12
  • The International Conference on Arbitration in Libya – held in Tripoli with international participation

    43 shares
    Share 17 Tweet 11
LibyaHerald

The Libya Herald first appeared on 17 February 2012 – the first anniversary of the Libyan Revolution. Since then, it has become a favourite go-to source on news about Libya, for many in Libya and around the world, regularly attracting millions of hits.

Recent News

On National Information Technology Day, the mini-satellite project CubeSat was launched

Ministry of Industry provides support to the Industrial Research Centre

Sitemap

  • Why subscribe?
  • Terms & Conditions
  • FAQs
  • Copyright & Intellectual Property Rights
  • Subscribe now

Newsletters

    Be the first to know latest important news & events directly to your inbox.

    Sending ...

    By signing up, I agree to our TOS and Privacy Policy.

    © 2022 LibyaHerald - Powered by Sparx Solutions.

    No Result
    View All Result
    • Login
    • Sign Up
    • Cart
    • Libya
    • Business
    • Advertising
    • About us
    • BusinessEye Magazine
    • Letters
    • Features
    • Why subscribe?
    • FAQs
    • Contact

    © 2022 LibyaHerald - Powered by Sparx Solutions.

    Welcome Back!

    Sign In with Facebook
    Sign In with Linked In
    OR

    Login to your account below

    Forgotten Password? Sign Up

    Create New Account!

    Sign Up with Facebook
    Sign Up with Linked In
    OR

    Fill the forms bellow to register

    *By registering into our website, you agree to the Terms & Conditions and Privacy Policy.
    All fields are required. Log In

    Retrieve your password

    Please enter your username or email address to reset your password.

    Log In
    This website uses cookies. By continuing to use this website you are giving consent to cookies being used. Visit our Privacy and Cookie Policy.
    Are you sure want to unlock this post?
    Unlock left : 0
    Are you sure want to cancel subscription?