Call to rein in deficit financing and protect monetary policy
LIBYA – Omar Zarmouh, a professor of economics at the Libyan Academy, has warned the acting governor of the Central Bank of Libya against going along with a way of managing public finances based on temporary financial arrangements that have continued for years without a general budget approved by the legislature, arguing that continuing them is one of the mistakes that should be avoided.
A clear ceiling on the deficit and a legal framework for spending
In exclusive comments to Asharq Al-Awsat newspaper, Zarmouh stressed the need to end this situation and to set a clear ceiling for deficit financing and rules for its use, so as to strengthen fiscal discipline, ease pressure on monetary policy and place the management of public resources within a clear legal framework subject to legislative oversight.
