Aghnia: Salary Crisis Reflects Structural Imbalance in Spending and Division, Not Just Late Payments

Aghnia calls for reform of public financial management

LIBYA – Economic and financial expert Abu Saif Aghnia has said Libya’s salary crisis has gone beyond concerns over late payments and now reflects structural imbalances in public finances linked to inflated spending, institutional and financial division, and the lack of a unified, effective system for managing and overseeing expenditure.

Regular pay a right that should not be held hostage to disputes

In comments to Sputnik, Aghnia said confining the debate to whether wages are paid on time does not address the core problem, stressing that paying salaries is a fundamental right of citizens and a direct obligation of the state that must not be affected by political wrangling or division between institutions.

A unified fiscal policy and an employee database

He called for a unified fiscal policy, an accurate database of public sector employees, linking the payroll system to actual budget allocations, and closer coordination between the Ministry of Finance, the Central Bank of Libya and oversight bodies.

Multiple procedures slow spending

He noted that multiple layers of oversight and administrative procedures can complicate the spending process and delay its completion.

Duplicate institutions in the east, west and south

Aghnia said Libya faces a crisis broader than the salary problem, one tied to the management of public resources, government spending and the duplication and multiplicity of institutions. He said the existence of parallel institutions and ministries in the east, west and south of the country showed, in his analysis, the extent of administrative and financial division.

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