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Ammon News - AMMONNEWS - Prime Minister Hani Mulki briefed the Senate's Financial and Economic Committee about measures to address economic challenges facing the Kingdom, including spending cuts and limits on the salaries and benefits of senior staff members.

The country is facing a real economic challenge with debt rising to unprecedented levels in the past years, and that an economic reform plan is required to a resilient economy capable of serving generations and the Kingdom's economic and developmental policies, he said.

The strategy should go beyond securing funds to offset the budget deficit, Mulki said at the meeting with Senate President Faisal Fayez and members of the committee.

The Prime Minister reviewed the main features of the 2017 general state budget, which the Lower House passed on Thursday and will be debated by the Senate on Tuesday. He said most of the funds in the budget go to pay salaries due to a bloated administrative system.

He reiterated that any measures to address the economic situation and the budget deficit would not affect basic commodities or the low- and middle-income groups. He assured that there will be no raises in taxes or customs on more than 70% of food goods and that the prices of bread, water and cooking gas cylinders will remain unchanged, adding that only luxury items would be affected.

Mulki also said that the government is mulling unifying foreign labour fees for all sectors in its bid to streamline the labour market and address unemployment.

The Senate president urged the government to address tax evasion, boost the social safety net and launch job-creating projects to alleviate poverty and unemployment, noting that the Kingdom had conquered all hardships and throughout its history made key achievements and successes in various domains.

The financial committee's chairman Rajaie Muasher also called on the government to set priorities regarding projects and explain measures to increase domestic revenues or acquire additional foreign aid or grants this year.