Economic Expert Samir Halila to SadaNews: "The Salary Bill Needs Serious Correction"

SadaNews - Economic expert Samir Halila stated in an interview with SadaNews that addressing the financial crisis faced by the Palestinian Authority must go beyond temporary solutions, calling for the adoption of a medium or long-term reform vision, starting with a comprehensive review of the public spending structure, especially the salary bill, which he described as needing "serious correction."

He added: "It is true that the current extremist Israeli government exerts severe pressure on the Palestinian economy, through control of clearance revenues and occupation measures, but we must also recognize that the financial crisis stems from internal reasons that have accumulated over the years, requiring strategic remedies."

For the full interview:

Do we need this number of employees?

In response to a question about whether the authority employs an exaggerated number of employees, Halila explained that he analyzed this issue through international comparisons, stating: "The percentage of government workers in Palestine is about 13% of the workforce, which is comparable to the average in the region and lower than some countries like Egypt and Jordan, where the percentage reaches 25%. So from a numerical standpoint, we cannot say there is a significant excess."

"Although the number of employees is not exceptionally high, the salary bill constitutes 14% of the GDP, a figure higher than the regional average of about 11%. This means that the size of salaries, compared to GDP, is greater than in other countries," Halila said during his conversation with SadaNews.

He clarified that the significant growth in the salary bill is not only due to an increase in the number of employees but also to bonuses and allowances.

"He continued: "For example, the value of salaries in 2011 was approximately 6.4 billion shekels, which increased to 8.4 billion shekels in recent years. Of this increase, only 0.3% was due to an increase in the number of employees (by about 2,300 employees), while the real increase was in annual allowances, which account for about 2% annually."

Need to Review Regulatory Laws

Halila emphasized that one key to reform lies in reviewing existing laws governing public employment, saying: "We are still operating today under the Civil Service Law of 2005, the Security Forces Law of 2007, and the diplomatic law. These laws have been in place for about 18 to 20 years, and it is clear that there is an urgent need to review and update them to meet current economic and financial challenges."