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Bond deficit funding hit
July 7, 2015, 11:33 am

The National Assembly members will closely monitor the steps that the government will take to cover the State budget deficit, says MP Jamal Al-Omar.

According to the lawmaker, he will not hesitate in subjecting the authority to political accountability in case it deviates from the right path.

He said the government must be responsible for this unprecedented budget deficit, which is the result of unjustified spending and mismanagement. He outrightly rejected any attempt to cover this deficit from the pockets of citizens. He pointed out that using the general reserve to cover the deficit is the most cost effective measure.

He explained the annual deduction ratio of the general reserve, which is estimated at 10 percent, is enough to cover the deficit; so he is surprised why the government intends to issue bonds for this purpose considering the cost is higher.

He warned that the lawmakers will be compelled to take a firm stand against Finance Minister Anas Al Saleh if the government pushes ahead with its plan to issue bonds, especially since the revenue from reserve deposits is very low compared to the cost of issuing bonds.

Source: Arab Times

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