Beirut: Finance Minister, Yassine Jaber, on Tuesday said that the government was compelled to act amid a deepening crisis and a paralyzed public sector, stressing that salary increases could not be approved without securing revenues to avoid further instability.
According to National News Agency – Lebanon, Jaber noted that granting raises without funding would expose the country to financial risk, in line with International Monetary Fund recommendations to preserve fiscal balance. He said the Treasury cannot cover the full $800 million cost, but recent decisions are expected to generate around $620 million.
Moreover, Jaber explained that the immediate increase in fuel prices was adopted to prevent a black market, while any VAT increase requires legislation and will not be implemented immediately. He stressed that essential goods for low-income groups remain exempt from VAT.
Jaber added that more than 50% of the state budget goes to salaries and that additional measures are underway to improve revenue collection, including issuing collection orders against quarries, boosting customs revenues, enforcing anti-money laundering legislation, and referring 200 companies to the public prosecutor over tax evasion.
Jaber finally affirmed that the government is working on all fronts to restore state revenues and maintain financial stability.