‘Transparency is not optional:’ PM Salam presses lawmakers on public sector pay

Lebanese Prime Minister Nawaf Salam said transparency is “a duty, not a choice,” stressing that citizens cannot be asked to bear new burdens without being fully informed, and that trust between the state and the public, damaged in the past, will not be undermined again.

Salam emphasized that the demands of military personnel and public sector employees are legitimate and justified. He added that the government sought to secure funding sources for salary increases to avoid repeating the mistakes of the controversial salary scale crisis.

He said the Cabinet decided not to undertake any spending without first securing funding sources, to prevent the country from sliding back into deficit and debt and resorting to printing local currency, which would further weaken the exchange rate.

Salam noted that when the government chose to increase the value-added tax, it took into account exemptions for essential food items, medicines, medical and hospital expenses, university and school tuition, books, diesel, household gas, residential rents, and other basic goods.

He acknowledged structural flaws in the tax system, saying they stem from decades of financial policies that negatively affected low-income groups. He said the government is working on a comprehensive fiscal policy based on tax reform, rationalizing spending, and restructuring public debt.

To prevent traders and monopolies from exploiting the situation to raise prices, Salam said consumer protection inspectors at the Economy Ministry have intensified inspections of supermarkets and bakeries, and that violators will be referred to the judiciary.

He added that the government has improved tax collection and increased state revenues by 54% in one year, adding that revenues rose from $3.89 billion in 2024 to $6 billion in 2025. He stated that the increase was achieved not through new taxes, but through better collection of existing taxes, improved enforcement, and tighter control of borders and ports. 

He noted that revenues are expected to rise further with the activation of scanners.

He said the government has issued collection orders exceeding $1 billion against quarry and crusher operators, including influential figures, warning that those who fail to settle their dues will face legal action to recover state funds.

In the 2026 draft budget, Salam expressed that expenditures were raised to $6 billion to cover health care, education, salaries, and security. However, securing an additional $800 million for wage increases will require new funding sources.

He added that customs enforcement measures have been implemented against evaders, who have been barred from importing goods. The government will also complete a survey of maritime and riverfront properties amid increased violations, and those who fail to pay what they owe will face prosecution.

Salam said he has presented all these facts to the public and to members of parliament, telling lawmakers that if they have an immediate alternative to secure $800 million, they should present it, or state clearly that they do not support increasing public sector wages.

He also said the energy minister has announced the launch of a forensic audit at the ministry, describing it as a first step that will extend to all ministries facing allegations of wrongdoing.