Government Confirms Salary Continuity Despite Budget Approval Delay

An advisor to the Prime Minister confirmed on Tuesday that the delay in approving the general budget will not affect the disbursement of salaries for employees and retirees. The advisor anticipated that the upcoming budget would focus on ten key important factors. He clarified that the non-approval of the budget will not lead to a halt in the payment of salaries for employees, retirees, or social welfare beneficiaries, emphasizing that these salaries are considered essential expenditures that the state is committed to providing under existing legal and financial frameworks. He added that financial policy continues to be managed in accordance with the provisions of Federal Financial Management Law No. 6 of 2019, as amended, particularly Article (13) which regulates public spending mechanisms in case of a delay in approving the federal general budget law. He noted that this legal framework has allowed state institutions to continue operations by granting the Minister of Finance the authority to authorize ministries and non-ministerial entities to spend 1/12 monthly of the total actual current expenditures of the previous fiscal year, after excluding non-recurring expenses, pending budget approval. The advisor explained that, under this mechanism, the state has continued to finance essential commitments, primarily salaries, wages, pensions, and social protection benefits, as well as necessary operational expenses related to the continued provision of public services. He pointed out that the same article allowed for the continuation of funding for ongoing investment projects based on actual completion rates or completed procurements, provided that necessary liquidity is available and expected allocations exist within the subsequent budget draft. He indicated that the non-approval of the budget might impact the investment sector, as some new or stalled projects requiring additional financial allocations could face delays or slowdowns in implementation, while existing projects continue according to available funding or previous contractual obligations. He also highlighted that the national financial landscape faces exceptional challenges in 2026 stemming from geopolitical and regional developments and the resulting disruptions in global energy markets, supply chains, and international trade. This has directly impacted oil revenues, which represent the main source of public income, imposing increasing pressure on the government's financial position and its ability to finance both operational and investment spending. In light of these variables, the government and the Ministry of Finance are moving to prepare the federal general budget draft for 2027 from a reformist perspective aimed at addressing the financial and economic repercussions of the current regional conditions, thereby ensuring financial sustainability and macroeconomic stability. The advisor anticipated that the upcoming budget would focus on enhancing the efficiency of public resource management, rationalizing operational spending, protecting social spending related to the most vulnerable groups, securing essential state commitments, prioritizing investment projects with high economic and developmental viability, diversifying sources of public revenue and reducing relative reliance on oil revenues, supporting financial and administrative reform programs and government digitization, in addition to strengthening the national economy's ability to withstand external shocks and achieve financial stability in the medium and long term.