Proposals to Reduce Saudi Budget Expenditures

Business

May 7th, 9:48am

Riyadh- Fatehelrahman Yousif

Saudi Arabia is moving towards reducing government spending to meet the effects of Corona on the economy (Asharq Al-Awsat)

Economic analysts stressed that the financial transparency shown recently by Saudi Arabia is enough to draw a roadmap that will secure the Kingdom’s way out of the global coronavirus crisis. These analysts offered a package of proposals to strengthen financial policies and save on expenditures while protecting domestic and foreign investments from the shock of the post-pandemic measures expected to taken. Abdul Rahman Al-Zamil, the former chairman of the Riyadh Chamber of Commerce and Industry, told Asharq Al-Awsat that he was very optimistic towards the recent statements given by the Kingdom’s Finance Minister Mohammed Al-Jadaan. Confirming that Saudi Arabia enjoys the ability to cut project spending by at least 15%, Al-Zamil said that oil prices are set to bounce back. “I am convinced that oil prices (per barrel) will not be less than $40,” Zamil said. Zamil added that the new procurement system will help in controlling financial spending, as well as increase the integrity imposed on projects. He stressed that the use of local products and services will save a significant percentage of the cost and reduce the cash outflows from the country and protect national investments from the shock of expected measures. Academic and economic analyst Ibrahim al-Omar said that the Kingdom’s transparency will set the stage for financial austerity measures that could affect spending on projects, operations, and maintenance. Omar stressed that the Kingdom previously passed through similar conditions, but the difference is to increase spending from the previous era, and therefore the effort will be focused on rationalizing spending and reducing the size of the gap that will likely be covered by borrowing or withdrawing from reserves. Economic expert Abdulrahman Baeshen assured Ashsarq Al-Awsat that issuing strict decisions to control public finances is one of the most important elements of strengthening Saudi economic and financial standing.

from Asharq AL-awsat https://aawsat.com/english/home/article/2271986/proposals-reduce-saudi-budget-expenditures