(MENAFN- Alghad Newspaper)
The government is currently looking into possible steps to attain the required financial reforms to control public deficiency and debt. Among the ideas up for discussion are de-subsidising bread, and maybe later raising power tariffs.
Generally, the government is hoping to expand local revenues by the hundreds of millions, some of these expansions are to come from direct taxes, like sales tax, and others from customs, in addition to a number of domestic revenue streams.
What the government left out, however, in its effort to develop solutions to an extremely complicated issue, is economic growth; how does the government intend to vitalise growth?
The targeted growth rate is 2.1 per cent at this point, and that is, honestly, and disgraceful figure.
If anything, it only means that the government has, once again, failed to provide real solutions to our suffocating problems.
With the economic growth rate so low, it is unlikely that anything good will come from all the government's coarse decisions.
None of these 'reforms will matter when the economy dips, or at best, fails to pick up!
Not long ago, Dr Hani Mulqi's government passed a bundle of decisions in February, which run along the same lines of Mulqi's underway suggestions.
In order to assess the prospects of further excisions, we need to evaluate the results of these latest decisions, so far, since February.
Have these hikes since improved anything?
Strategically speaking, we can project estimate outcomes based on the results we have now, eight months in.
The figures should be enough to shed some light as to what is to be expected to come out of more similar decisions.
The latest study by the Economic and Social Council addresses this topic in particular. It evaluates clearly the outcomes of Mulqi's latest decisions, fically and economically, and the assessment was expectedly humble.
Revenues have not even touched on the targeted goal so far, and it doesn't look good, despite the three-month leeway until the fiscal year and the collection is over.
The study concludes that income segments below JOD400 a month have suffered a lot under the February reforms.
Bearing in mind that 75 per cent of the workforce makes less today than it did when the study was conducted, and some two thirds of the retirees too, this means that even more people are affected by these decisions.
Moreover, the study indicated that many households have resorted to substituting commodities to cut costs. Many switched from fresh produce to canned and frozen, but they did not cut on cigarettes.
If anything, this indicates that Jordanian households are miss-managing their resources.
Back to the point; are the results guaranteed?
Officials need only to reflect some, not a lot, to come only to one conclusion; despite all the measures and reforms ratified since Dr Abdullah Nsoor's government, not much has changed, in terms of goals attained. Even after Nsoor's government floated fuel prices, which officially cost the government some JOD800 million annually, the Budget figures did not show much improvement, if any!
Today, as Mulqi's government stands on the verge of yet another seemingly pointless and dangerous adventure, it is crucial to scientifically explore the feasibility of these decisions.
If at all feasible, the government should shed light on the other prospects of its plans, besides the revenues, as in where will these revenues go? What is in it for the citizen?
The Council's study is available to all, and the cabinet should look into it, to have a more solid basis for their projections and goals.
If they should arrive at the conclusion that it is, indeed, feasible, as opposed to the vague promises we're used to, then they should not shy away from the public.
Otherwise, it would be wise to hold back on these reforms and find another way.
Either way, the government should be open about its projects and address the taxpayers as to what they should expect.
The most important strategic question is, based on empirical data; are we on the right track?!
When we've answered this question, we can decide with surety and clarity on what we should be doing next!
This article is an edited translation of the Arabic version, published by AlGhad.
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