Borrowing law crucial for strategic planning, deficit financing: Official
A borrowing law with an adequate ceiling in terms of amount and time limit is essential for strategic planning and financing the deficit in the state budget, a senior Finance Ministry official has said. Abdulazi Al-Mulla, chief of the ministry’s Public Debt Management Office, added in a press release yesterday that the draft bill on borrowing is part of a series of legislations issued in 1987 allowing the government to borrow for financing the deficit in the budget.
The bill has been recently approved by the cabinet, to be later referred to the National Assembly. It combines a host of choices to handle the situation, external and domestic borrowing, and withdrawing from reserves, Mulla noted. He pointed out that each choice has its own criteria, and regulations, for preserving the a state’s financial reputation and credit rating. The draft bill sets a ceiling of the amounts of money the government could borrow over a certain period of time. —KUNA