Thursday 03 February 2022 100
Abdul-Zahra Muhammad Al-Hindawi
When the Minister of Finance spoke about the possibility of a decline in the need for oil in the global market, his words were to repeat the alarm bell, of the repercussions of the economic situation, which could lead to the layoffs of employees, and we have experienced such a situation more than once,
but social media She shrieked with wailing, and called out for woe and despair, accusing the minister of inciting fear and panic among the people, and then this might lower their level of immunity, at a time when the Corona virus with its new mutator "Omicron" is still striking everywhere!!
And in fact, what the minister said is not new, but it is a repetition of what the experts say, and his ministry is the most knowledgeable of the country’s revenues and the sources of those revenues, which oil is still the main source, and salaries and wages still occupy the largest proportion of them, and in all crises, it is required. From this ministry, securing the requirements of consumer spending, which everyone considers a red line, should not be compromised in any way.
Therefore, during the outbreak of the two financial crises in 2014 and 2020, internal and external borrowing was the necessary solution to confront the storm.
Now, as oil prices have recovered, voices have risen again, calling on the government to increase spending, and such measures would lead to a state of numbness, in the non-oil sectors, very similar to the way people deal with taking the Corona vaccine, when infections rise The number of vaccinators is increasing, and when infections decrease, people forget about the vaccine!, unaware that the recurrence of infection with the virus weakens immunity, and therefore I say,
we should take the warnings of the Minister of Finance seriously,
by benefiting from the rise in oil prices, in financing sovereign funds, or at the very least, by deducting one dollar for every barrel of oil, multiplied by the daily export volume, and we can imagine the amount of sums that will accumulate within a few years, to be directed later, towards achieving real development in the country, in addition to opening broad prospects for investment in all development sectors, and
it is certain that within ten years, we will be in A completely different situation from what we are in today, and we have a good example in the experiences of countries.