Studies, government reports and recommendations of the committee tasked to review subsidies are gearing towards the rationalization of subsidies, especially since some subsidies are given to undeserving people, says MP Ahmed Lari. Speaking to reporters, Lari stressed the need to change the government’s policy on subsidies considering the budget deficit and oil price decline. He pointed out the price of oil in the global market now ranges from $40 to $60 while it is feared that the price will go down further due to the signing of the nuclear deal between Iran and the P5+1 countries.
He stressed the need to intensify efforts to diversify sources of national income, including rationalization of subsidies, but it should not affect the ordinary citizens. He also called for more focus on investment spending instead of consumer spending and the establishment of large companies in the fields of education, health and housing to contribute to the diversification of national income sources.
Source: Arab Times