All the parties agree that three factors constitute the main cause of the financial deficit in Lebanon: the size of the public sector, the public debt service and the electricity deficit.
The scandalous numbers related to Lebanon’s financial situation continue to be revealed, indicating the grave position of Lebanon.
In a country of Lebanon’s size, the recruitment of 31,000 employees in the public sector within a period of 4 years (between 2014 and 2018) is in itself a disaster.
Meanwhile, the salaries of the public sector employees constitute 40% of the expenses and have increased by 62% between 2010 and 2017, including the retirement wages, which in turn increased by 84%.
The state’s treasury transfers to Electricite du Liban constitute 9% of the expenses and the public debt service 30%, and they have increased by 26% between 2010 and 2017. They cost the state now around $4.5 billion per year.
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