SUDDENLY the moment of reality has appeared. The oil tap that has been providing us contracts, salaries, cars, air tickets and Asian workers has stopped working in an haphazard manner and the prestigious tap has entered into a new phase of economization. This is not the first time Saudi Arabia is entering the phase of budget deficit after years of surplus revenues. But this time the impact of oil price fall was very quick and strong. The government has started imposing austerity measures by lifting subsidy on certain services, increasing fees, cancelling allowances of government employees and cutting salaries of small employees to ministers. By cutting salaries of ministers and Shoura Council members, the government wanted to send a message to the general public that it was going ahead with its austerity program by reducing expenditure through various ways. This message would have been meaningful if the government had reviewed its spending of oil money over the past years. Correct use of such government funds would lead to reducing economic difficulties caused by a steep fall in oil prices over the past year. As citizens were lavishly spending their money during the oil price boom in terms of consuming more oil, electricity and water, the government was spending huge amounts of money on grants and aid to foreign countries, some of whose names we have not even heard of before. All these policies need to be revised in light of the present economic situation. This way the message of cutting salaries of ministers and Shoura members should reach different economic sectors to keep things in order, reduce wastage of public money and make optimum use of state funds for the progress and prosperity of the Kingdom and its people. We need not tell more than the truth that the oil tap will not be same as before. This is a reality, which will not cost us anything. Everybody knows that Saudi Arabia did not show any stringency in providing financial assistance to friendly countries, organizations and individuals. In fact, the Kingdom is the world's largest donor to foreign countries and institutions. The present economic situation provides a good opportunity to the Kingdom to rectify its economic policies. We should control spending in order to overcome the present economic crisis and plan for a brighter future. We will not be able to make any giant economic leap if we did not achieve economic recovery and budgetary balance. Economic reform is essential even if it looks bitter but it should not be limited to austerity measures to overcome the present crisis by cutting expenses and increasing service charges. On the other hand there should be fundamental changes in the philosophy of spending, considering the steep fall in oil revenue. At the same time, strong measures should be taken to end financial corruption, stop wastage of public money and ensure optimum use of state resources. The economic crisis should lead us to make positive thinking in order to overcome difficulties. This realistic approach will surely make our situation better than before.
