RIYADH, 11 November 2002 — Ehsan Bouhaleeqa, an economist and member of the Shoura Council, has said that the Kingdom will be able to tackle its public debts, estimated at $180 billion, by cutting down on budget deficits. He also called for new strategic policies to increase non-oil revenues.
“Every year, the government is forced to borrow money to meet deficit,” he said, adding that the budget deficits will continue for some years. Bouhaleeqa did not favor sale of state shares in some private companies as a suitable measure to solve the problem.He urged the government to continue the policy of gradual payment of public debts, without affecting development projects, especially in the areas of health and education.
“What is important is that the government should abide by the timeframe to pay off the debts without affecting development projects,” he said. Hastening of payment will obstruct everything as such a move is not in tune with reality, especially the government’s commitment to society and population growth,” he explained. Non-oil revenues account for less than seven percent of the country’s gross domestic product.
The Kingdom owes about $63 billion to buyers of government bonds, $32 billion to Saudi commercial banks, $37 billion to the Pension Fund, $18 billion to the General Organization for Social Insurance, $14 billion to other funds and organizations and $10 billion to farmers and contractors.
