Prime Minister Salam Addresses Lebanese Citizens: We Will Not Accept the Status Quo

Prime Minister Nawaf Salam told the Lebanese people that "economic pressure affects employees, retirees, military personnel, teachers, and business owners, and you have the right to ask the government what it is doing?" In a press conference, he said, "I know how high the bill for private electricity generators has been over the past two months, and what it means for a citizen to be forced to choose between filling their car with fuel or providing for another household need. I know what it means for parents to calculate school fees, transportation, and books costs, for patients to hesitate before undergoing a medical test or buying medicine, and for salaries to run out before the end of the month while household needs and expenses remain uncovered. I want to speak to you clearly and frankly about the state's financial situation, its spending priorities, revenue sources, and the steps we are working on to alleviate the burden on citizens," adding, "Last year, after years of decline, the Lebanese economy achieved growth of 4.2 percent. That was the beginning of recovery and an opportunity to build upon. However, the war imposed on us halted this trajectory and pushed us backward. The economic contraction this year is estimated at 6.4 percent."

He pointed out that "the regional crisis and the closure of the Strait of Hormuz have practically doubled oil prices, increasing shipping and insurance costs, which reflected on the cost of importation, transport, and production, and ultimately on the prices we pay in Lebanon, as in various parts of the world," noting, "It is true that there are factors beyond our control, such as global oil prices, but there are also duties incumbent upon us, which we cannot and will not evade."

He affirmed that "one of our first duties is not to allow some generator owners, merchants, or importers to exploit rising costs to achieve illegitimate profits at the expense of people's needs and suffering, by unjustifiably raising prices or imposing additional fees. We have asked the Consumer Protection Directorate to intensify inspections and oversight, strictly enforce compliance with meters and official tariffs for generators, and draw up violation reports against offenders and refer them to the judiciary," pointing out that "any decrease in the cost of importation or transport must reflect on the prices of goods and services. It is not permissible for prices to rise immediately when costs increase, then remain unchanged when these costs decrease."

Salam continued, "Despite the difficult reality, we managed to improve collection and increase public revenues, bringing the draft budget for 2027 to approximately seven billion dollars, compared to around three and a half billion dollars when our government was formed. The increase in the size of the 2027 draft budget to approximately seven billion dollars represents a significant improvement in the state's ability to finance its projects and services, but it does not mean that we have sufficient surplus to meet all legitimate needs of citizens," saying, "A large part of the increased spending in the 2027 draft budget is allocated to correcting salaries that have lost their value since 2019, with the additional cost for salaries amounting to approximately one billion and two hundred million dollars."

Salam stressed that "public sector employees have the right to live with dignity. Employees, military personnel, and teachers perform a public service from which we all benefit, and we do not accept that they continue to fulfill their duties while their salaries are insufficient to meet their basic needs," announcing that "we must maintain fiscal balance. We cannot approve expenditures without securing the necessary funding for them, then charging the citizens the price by endangering monetary stability."

He added, "We do not want to return to financing current spending through borrowing and treasury advances, repeating the policies that Lebanese paid for with their savings and deposits. To protect monetary stability and the purchasing power of citizens, we will not spend money we do not have, and we will work to improve the use of every amount we collect and direct it toward priorities that matter to people."

He detailed what the government has done, saying: "We increased the allocations for the Ministry of Public Health in the 2027 draft budget by approximately 16 percent compared to the current year, to enhance coverage for hospitalization, medication, and healthcare costs, and to alleviate the burden on families. We raised the budget contribution to the 'Aman' program to 70 million dollars, and with the expected funding from the World Bank, we will increase the number of beneficiary families during 2027 from approximately 100,000 to 150,000 families. We allocated 20 million dollars in the 2027 draft budget for economic empowerment programs, including vocational training and rehabilitation, assistance in purchasing equipment and productive facilities, and support for small business owners, artisans, and farmers. I believe citizens have begun to feel the results of the work of the Ministry of Public Works and Transport in various regions, from paving and rehabilitating roads to restoring bridges."

He indicated that "we did not introduce any new taxes in the 2027 draft budget, contrary to rumors and lies that were circulated. What we did was amend some fees that were still calculated based on old exchange rates, and introduce fees affecting yachts and private jets. These amendments should not be confused with increasing the burden on low-income families. We began pursuing companies evading Value Added Tax (VAT), and the Ministry of Finance issued warnings to 107 companies, with additional files under investigation involving amounts estimated between 200 and 250 million dollars, and we are preparing a new batch of warnings."

The Prime Minister announced that "the VAT we are pursuing companies to pay is not a new tax; rather, the citizen already paid it when purchasing a good or service, and the company collected it without transferring it to the treasury. We cannot accept that these funds remain with companies while hospitals, schools, and public administrations need financing," continuing, "Regarding corporate profit tax, we decided to start with major companies. Currently, 64 companies are having their files studied and audited, and the administration has distributed the work according to sectors. Customs revenues have doubled due to improved collection, and we are working to expand mechanization and oversight, strengthening the customs police and recruiting new elements."

He clarified, "It is absolutely incorrect that the state targets low-income earners and leaves major companies alone. We are pursuing companies evading taxes and working to collect the treasury's rights. In the file of quarries and mines, we sent collection notices worth hundreds of millions of dollars. It is true that these funds have not yet been collected due to appeals by their owners before the judiciary, but we are confident in the validity of our claims and will pursue these files legally. In the maritime properties file, we tasked the army with completing the survey to update data regarding their number and areas, and we are working on reassessing the dues owed to claim them according to their actual value."

He added, "The funds from quarries and maritime properties will not all enter the treasury tomorrow, but we will not relinquish the state's rights, because they are ultimately the citizens' rights, and we will not promise people to spend money we have not yet collected. In the government, in cooperation with the Ministries of Energy and Finance, we are working on sustainable solutions for the electricity sector, increasing electrical supply and providing it at lower cost and regularly in the medium term. We will announce clearer details on this matter in the coming weeks. We are also working on an integrated and advanced plan for public transport between regions and within major cities, including more than 250 new buses, to provide a cheaper option for citizens in their daily commutes and reduce traffic congestion. The Minister of Public Works and Transport will announce the details before the end of next week."

Salam noted that "we allocated credits in the 2027 draft budget for the Housing Institution to provide loans for families to purchase solar energy systems, which will reduce their reliance on private generators and lower their monthly bills. We will reopen the field for the Housing Institution to grant new residential loans to low-income families, and I fully understand how owning a home has become difficult, especially for young people."

The Prime Minister concluded by saying, "I will not tell you that everything will change overnight, but we certainly will not accept that the situation remains as it is."