Financial expert Abdul Hakim Amer Ghaith has warned against the budget’s near-total reliance on oil revenues and royalties amid weak non-oil revenues, stressing that this approach exposes public finances to the risks of price and production fluctuations.
Ghaith pointed out that high current spending on salaries and subsidies constitutes continuous pressure on public finances, and could lead to a worsening deficit in the event of any drop in oil prices or a decline in production quantities.
He explained that the rise in foreign cash expenditures to $23.7 billion, compared to $17.7 billion in revenues, reflects a continuous deficit in hard currency flows, which requires structural reforms in public finances and diversification of income sources.