Regarding the government's announcement of the gradual exit of the State from production for the benefit of the private sector ✍️ Professor: Fikri Kabbashi, Al-Amin Al-Arabi

According to information, the Minister of Finance, during his meeting with national businessmen, said that the government is developing policies that support the gradual exit of the state from the production processes of the economy in favor of the private sector, and this is what we have called for throughout the past period. We also warned of the consequences of the expansion of the public sector at the expense of the private sector and the entry into unequal competition, which ultimately led to negative, structural inflation. affected the performance of the private sector, which resulted from the entry of the state into the market to carry out purchase and sale operations, which led to the creation of economic chaos, the characteristics of which the most important appeared in state purchasing procedures, where the government The market and public procurement represent the greatest resource for the private sector, part of the economic cycle, through the state obtaining revenues in imposing direct or indirect taxes on the private sector and financing expenses related to basic services and purchases necessary for the operation of its business, which requires a commitment to apply standards of transparency by announcing that tenders and calls for tenders Bids are made by official means, purchasing transactions are then subject to free and fair competition and fairness in sorting and determining to whom bids and tenders will be awarded in all sectors . Likewise, there is another one. no less important issue in the context of economic reform, which is the abolition of monopoly in favor of specific institutions and houses of the private sector, including the import and export of strategic goods. The simplest example is the import of wheat and the export of gold.

Likewise, in the same context, I hope that the reforms initiated by the Ministry of Finance will be extended to include the fight against demand inflation, which results from the inability to control monetary emissions in due to the expansion of monetary emissions, which led to an excessive volume of money supply in circulation by continuing to print money without being accompanied by an expansion in the production of goods and services within the economic sector of the society. There are several other main reasons other than the official show. of money which could have led to an excessive increase in the money supply. Perhaps the most important of these is the widespread spread of rumors about currency counterfeiting in light of the exceptional circumstances left by this damn war, in addition to the popularity of the war. black market for currency trading, which led to the explosion of inflation and its high rates, so that the value of the local currency became worthless compared to other foreign currencies. Besides what has been reported about the high rates of smuggling of public funds abroad, which calls for the need to change the form of currency, the most important of which is to control the size of the money supply in circulation, in addition to attracting citizens' savings to the state banking sector, which involves limiting and controlling the currency. the money supply leads to restoring confidence in the local currency as a container for preserving value. This is considered one of the challenges facing the banking system in Sudan, while the most significant disadvantages are: The cost that the state will have to bear for issuing the new currency. , according to what was announced regarding the currency change in Sudan, was estimated at around 800 million dollars. Among the negative points there is also the high demand for foreign currencies due to the tendency of the majority of citizens to transfer their savings to avoid change. controls that governments place on cash withdrawals after each deposit… Their savings are in the banks, which leads to an increase in the exchange rate of foreign currencies against local currencies to increase demand, but once the monetary supply is controlled and confidence in the local currency is restored, the situation will improve and there should be no fear of changing currencies and exaggerating the effects. Over the past few years, several major countries have been forced to change the form of their local currencies, despite the motives and reasons. The reasons differ from country to country, the most important among them being India, Venezuela, Turkmenistan, Turkey, Argentina, Brazil, England, Australia, Saudi Arabia and Morocco.

Finally, I consider that, as part of the reform, the Ministry of Finance should continue to take measures to combat cost inflation, which results in an increase in fees on locally produced goods and services, which 'add to production costs, as well as increasing costs. wages and salaries without this being accompanied by an increase in production.

Teacher: Fikri Kabbashi, Al-Amin Al-Arabi.

April 29, 2024 AD.

Source link

Related Articles

Leave a Reply

Your email address will not be published. Required fields are marked *

Back to top button