Al-Qamati links the value of a pay rise to purchasing power
LIBYA – Benghazi University economics professor Hilmi Al-Qamati said unifying salaries could reduce imbalances between sectors, but warned that a 10% wage increase does not necessarily mean living standards rise by the same amount, because inflation may erode its value, and that the real measure is how actual income evolves compared with inflation and living costs.
Permanent obligations and risks to the deficit and liquidity
Al-Qamati said, in comments to Erem Business, that salary spending is a permanent obligation rather than a temporary outlay, and that raising it without an improvement in sustainable revenues or a reordering of public-spending efficiency could widen the budget deficit and pressure on liquidity and the exchange rate, or crowd out investment spending and basic services.
Reservations over the legal basis of the decision
He pointed to a legal aspect of the draft decision, arguing that it conflicted with laws issued by the legislature, and that an administrative decision does not rank above the law and may not be used to repeal or diminish a legislative provision.
