ECONOMISTS CALL FOR ENHANCING NON-OIL REVENUES, 14 JUNE

ECONOMISTS CALL FOR ENHANCING NON-OIL REVENUES

Specialists in economic affairs called for the necessity of working to enhance non-oil revenues and reduce dependence on oil in a manner consistent with economic reforms.

The specialist in economic affairs, Dr. Ahmed Al-Rawi, explained to “Al-Sabah” that “oil is affected by variables as it is one of the strategic commodities, regardless of supply and demand, and the factors affecting oil prices can be identified, including political, economic, and factors resulting from conflicts and security disturbances. Because of its international and strategic importance, oil is considered a causal commodity.” For economic activity or even influencing political decisions that may lead to changing the positions of many countries towards rising prices. Regarding public budgets, Al-Rawi believes that “it has become necessary to take practical measures regarding reconsidering public budgets away from rentier expectations and raising all forms of unnecessary public expenditures.”

Activating non-oil revenue systems, such as the system of taxes and public fees, and revitalizing economic sectors so that the budget becomes capable of providing job opportunities for the young workforce and diversifying incomes, as well as developing oil production in proportion to spare capacity. The expert called for achieving stability in the growth of the general budget by adopting a rate that is compatible with the annual growth rate of the gross domestic product and not making the development of the budget linked to oil revenues.

For her part, the Dean of the Faculty of Business Economics at Al-Nahrain University, Dr. Nagham Hussein, explained in a statement to “Al-Sabah” that “not The stability of oil revenues generates complications in financial policy in the short and long term, and they are linked to a number of fundamental issues, including the relative importance of the oil sector in the national economy. Prices fluctuate, so the focus must first be on the long term and attention to the fair distribution of resources and burdens.”