State Council discusses ways to regulate public debt

Muscat: State Council members discussed ways of improving the economy and reducing public debt during the latest session.
The Head of the Economic Committee at the State Council, Sheikha Mohammed Al Harthy suggested the law during the 17th regular session of the fourth annual session of the Council on Wednesday,
According to Al Harthy, the public debt of Oman is increasing, which is why such a law is needed to manage it.
“Various indicators have shown that the public debt in the Sultanate is growing steadily, which requires the development of a law that works to ensure its efficient management and that limits are at safe levels to ensure the safety and durability of the national economy,” Al Harthy said.
The State Council heard that other countries have adopted such laws, and this local law would protect sustainable development and the economy’s stability. According to Al Harthy, this law would work to help the economy withstand the public debt and its growth rate, and many countries regionally have adopted laws such as this.
“The law must enable the economy to withstand the level of public debt, its growth rate and ensure that financing needs and its commitments are met at the lowest possible cost on a medium to long term basis, with a reasonable degree of risk,” the honourable council member said.
According to a statement by the State Council, “He [Al Harthy] explained that the issue of public debt is crucial as it has a direct impact on the economy of countries, the standard of living and the future of their coming generations.”
“He pointed out that globally, governments follow many plans and approaches to reduce the rise of the public debt and curb its negative effects on the economy by placing necessary controls through enacting special legislation,” the statement added.
At the end of the session, the council approved the proposal with the formation of a technical drafting committee to include the views of the honourable members.