Dr. Al-Badawi: Economic reform requires strong political will and qualified economic staff

2019-08-20 19:37:40.583 | view 676 | share : |

Khartoum, August 20 (SUNA) – The Economist Dr. Ibrahim Ahmed Al-Badawi has affirmed that the existence of strong political will and qualified economic staff are importance for the restructuring of the budget and fiscal policy as they are the most important entitlement in the framework of macroeconomic stabilization and supporting productive sectors through reducing the deficit and restructuring of the budget.  Dr. Al-Badawi pointed to the importance of reducing spending on the sovereign and security sectors, where this item constitutes more than 60% of the budget, indicating the importance of rationalizing the states government to come out with a federal rule with financial feasibility, considering the possibility of return to the major historical states (Northern, Kassala, Central, Kordofan, Darfur and Khartoum). Dr. Al-Badawi called for rationalization of commodity subsidies and limit them to direct cash and food subsidies, rather than to inefficient fuel subsidies, to increase financial effort by targeting augmentation of public budget revenues including the increase of tax collection on business profits, real estate and other direct taxes besides cancellation of exemptions. He pointed to the need to confine the mandate on the public funds to the Ministry of Finance and National Economy, in terms of mobilization, allocation and follow-up, and not to allow any ministry or institution to allocate the public resources outside the public budget, adding that the allocation of such resources should be directed the budgets to support education, health, water and reparation and development of infrastructure. Dr. Al-Badawi stressed the need to reform the Central Bank in terms of practical and research capabilities, in addition to follow-up and supervision of the banking sector, noting that this program requires support for the balance of payments from the International Monetary Fund within the framework of a national program for stabilization and structural reform, enabling the Central Bank to reduce inflation, adoption of flexible managed exchange rate systems that support the competitiveness of Sudanese exports in foreign markets, and the rehabilitation and capitalization of the banking sector to restore public confidence enabling it to undertake the financial intermediation functions necessary to finance economic operations.