The decision issued last August by the Council of Ministers to government agencies to take urgent measures to address the depletion of the liquidity of the general reserve ran into 5 major obstacles, in addition to the ministries’ announcement of their inability to implement some decisions.
Al-Qabas daily quoting sources said coordination by the Ministry of Finance with government agencies resulted in reducing expenditure to the tune of 616.2 million dinars from the current fiscal 2021/2022 budget by no less than 10% — by cutting down participation in all local and foreign exhibitions and conferences by 50%, and reducing local and external training for all government agencies.
This is in addition to reducing official missions, research, studies and contracts for non-essential services by 50% of the approved budget, in addition to prioritizing construction projects and contracts and postponing unnecessary ones.
Informed sources revealed that the Ministry of Finance has compiled a list for study of prices, rents, lands and buildings of state property and placed the issue on the table for government discussion.
The sources indicated that the Public Authority for Manpower proposed raising the salary and age ceiling for workers in the private sector, which is expected to stop disbursing employment support for them. The decision shall be implemented after one year from the date of its issuance.
The Council of Ministers had issued a decision in its meeting No. 39-2/2021 held on 8-16-2021, and instructed all government agencies to take the necessary measures regarding a number of decisions, including the following:
1 – Re-examination of the funds allocated for military support operations at the Ministry of Defense.
2 – Reconsidering reducing financial allocations for treatment abroad so that it is limited for critical cases only.
3 – Reviewing the number of students on scholarships.
4 – Reviewing the support, aid and subsidies provided by the Ministry of Interior (for the Police Force Club) related to sports activities.
5- Examining the possibility of fixing the amount approved in the 2020-2021 budget for the costs of staff scholarships.
6 – Reconsidering the decision of the Minister of Finance No. 18/1990 regarding mobile phones.
7 – Reviewing the list of prices for rents, lands and buildings of state property.
8- Forming a committee to re-examine the various types of subsidies provided by the state to provide the Council of Ministers, within a month from its date, with a report containing recommendations to rationalize subsidies and direct them only to those who are eligible.
Following is the list: “energy and fuel subsidies, housing subsidies, educational support, media support, agricultural support, social support, health support, economic support, sports support.
9- Providing the Ministry of Finance, within a month, with a study on reducing the item dispensing medicines in hospitals and health centers, supporting medical services, and possible mechanisms and alternatives for treating expatriates.
10 – Assigning the Ministry of Commerce and Industry to take the necessary measures towards studying the disbursement of basic foodstuffs to eligible people with low incomes, reconsidering the individual’s share of basic foodstuffs, reconsidering the numbers of domestic workers, and providing the committee to re-examine the various types of state subsidies provided by the Ministry of Finance with the results of the study Within a month of its date.
Al-Qabas learned that the five obstacles are represented in the impossibility of reducing Chapter One, which amounts to more than 8 billion dinars, as it represents the wages and salaries of state employees, the failure of the subsidy authorities to provide any clear initiatives in the area of reduction and the issuance of many laws that increased the financial burdens of the state with the difficulty of controlling it, in addition to the contracts made during the fiscal year, and the consequent financial and legal obligations, and that some parties focus their budgets in Chapter One by more than 90%, which hinders their ability to reduce.