A source within the People’s Assembly disclosed to Athr Press that there is an ongoing demand to raise salary levels and enhance the income of workers and employees. This is particularly pressing as the previous pay increase was quickly eroded by rising prices before it could have a meaningful impact.
In their statement to Athr Press, the source suggested that the raise should be around 500% in order to adequately address the financial needs of income earners and employees, with the goal of maintaining capital circulation within the market. This is especially crucial because government employees play a significant role in driving economic activity, given that they tend to spend most of their earnings on immediate expenses, as saving is often a challenge for them.
The source also highlighted that the previous salary increase was partially allocated to the restructuring of government support. However, not the entire sum was distributed as a direct salary increase. Some of the funds were allocated to job incentives, while others were directed towards supporting essential professions, such as anesthesiologists, university professors, and pilots, to ensure their retention in the country.
The source emphasized that there hasn’t been any discussion about a salary increase in the upcoming budget. They stressed the importance of improving the economic well-being of workers in both the public and private sectors. The source suggested that while the budget has increased when compared to the 2010 budget, the difference is substantial in terms of hard currency value. To combat inflation effectively, the government should encourage the industrial sector and support development and productive projects by providing loans with staged disbursements. This approach is more beneficial than offering loans for purchasing homes, at least in the short term. It helps preserve capital, prevents excessive accumulation in banks, and allows the government to finance the budget with a deficit if necessary.
The source continued to express that deficit financing, while not without its drawbacks, is a more favourable option than grappling with the existing inflation crisis. They pointed out that many countries recovering from the aftermath of wars employed deficit financing to stimulate agricultural and industrial sectors and support productive projects until a robust economic structure emerged.
It’s worth noting that the Supreme Council for Economic and Social Planning has already approved the preliminary budget for 2024, amounting to 35,500 billion Syrian pounds, with 26,500 billion allocated for current spending and 9,000 billion designated for investment spending.
Another source within the People’s Assembly told Athr Press that the budget has not yet reached the Council for approval and is expected to undergo a comprehensive review before a vote for approval. This source anticipated that the budget approval process might extend until the first half of December 2023, ensuring it is issued in a timely manner.
Furthermore, it’s important to mention that in mid-August, a decree was issued, implementing a 100% salary increase for all civil and military workers in the state, which came into effect in September.
This article was translated and edited by The Syrian Observer. The Syrian Observer has not verified the content of this story. Responsibility for the information and views set out in this article lies entirely with the author.