No Result
View All Result
Wednesday, July 16, 2025
23 °c
Tripoli
24 ° Sat
24 ° Sun
  • 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

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

Libya’s financial stability hinges on disciplined fiscal management and strategic investment: Husni Bey

Op-Ed: Libya’s Missing Link – Why Data is the Key to Reform While Preventing a Public Backlash

“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

Related Posts

UK Minister visits Tripoli – agreement signed to improve quality of English teaching at Libyan educational establishments
Business

UK Minister visits Tripoli – agreement signed to improve quality of English teaching at Libyan educational establishments

July 15, 2025
CBL receives results from meetings with international banks
Business

Fuel subsidies reached LD 60 billion, 30 percent of which is smuggled – therefore can invest just LD 5 bn in housing: CBL Governor Issa

July 15, 2025
Libyan Export Promotion Centre changes to become Libyan Export Development Authority – new logo adopted
Business

Libyan Export Promotion Centre changes to become Libyan Export Development Authority – new logo adopted

July 15, 2025
Libya Development and Reconstruction Fund signs contract with Turkey’s Ankamenia for maintenance of Benghazi University’s medical colleges
Business

Three health centres opened in Benghazi after maintenance and development

July 14, 2025
Libya to invest $140 billion in projects over the next decade
Business

Tripoli based Libyan government plans to complete 150,000 housing units by 2030

July 14, 2025
Libyan Railways Implementation Authority invites International Federation of Railways to participate in November workshop
Business

China to resume implementation of its stalled railways projects in Libya

July 14, 2025
Next Post

Libyan airlines flying into regulatory storm

New Canadian ambassador for Libya

New Canadian ambassador for Libya

ADVERTISEMENT

Top Stories

  • Libya Development and Reconstruction Fund signs contract with Turkey’s Ankamenia for maintenance of Benghazi University’s medical colleges

    Libya Development and Reconstruction Fund signs contract with Turkey’s Ankamenia for maintenance of Benghazi University’s medical colleges

    0 shares
    Share 0 Tweet 0
  • China to resume implementation of its stalled railways projects in Libya

    0 shares
    Share 0 Tweet 0
  • Libyan olive oils win gold at Anatolian, Berlin and Japan 2025 international olive oil competitions

    0 shares
    Share 0 Tweet 0
  • There are 4 million irregular migrants in Libya: Interior Minister Trabelsi

    0 shares
    Share 0 Tweet 0
  • BP to reopen office in Libya, Shell discusses prospects for cooperation in oil field development‎

    0 shares
    Share 0 Tweet 0
ADVERTISEMENT
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

Three Fisheries officials temporarily suspend from work by Administrative Control Authority suspected of corruption

UK Minister visits Tripoli – agreement signed to improve quality of English teaching at Libyan educational establishments

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.

    Welcome Back!

    Login to your account below

    Forgotten Password? Sign Up

    Create New Account!

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

    © 2022 LibyaHerald - Powered by Sparx Solutions.

    This website uses cookies. By continuing to use this website you are giving consent to cookies being used. Visit our Privacy and Cookie Policy.