Economist Mohamed Al-Safi told our source: “The Finance Committee faces two major challenges, the first is legal and the second is explanatory.
Regarding the legal challenge, the committee must not leave any legal gap in its composition, taking into account the existence of a supreme financial committee, which is not covered by the state’s financial law.
Regarding the explanatory challenge, the Committee could seek a legal solution regarding its situation.”
In addition, Al-Safi suggested that the state’s financial law clearly relates to the methods of preparing the budget in Libya. It is possible for the Finance Committee to replace the Budget Committee in which the Ministry of Finance is located, and this committee will not violate the state’s financial law. Rather, the Financial Committee replaces Budget Committee, which is supposed to exist.
“Continuing in the same context: The basic idea must not create a body or financial framework parallel to what currently exists,” stressing the existence of a state financial law that is not implemented, which must be followed. The committee will return us to the legal system, and this will be one of the greatest achievements.
As for the other challenge, he explained that it is the procedural challenge, how, if the committee succeeds, they will move to the Finance Committee and enhance transparency and financial rationality.
“The committee can also develop a framework for public financial policies, and this means clarifying the spending framework.”
He added that the committee must establish a general framework for financial policies, spending, and financial rules, as this will be a very important matter, and this framework is what will determine the work of the committee when negotiating with all ministries and all sectors about budget proposals, and will determine the criteria that clarify whether the proposal is appropriate or not. .
He continued, saying that in the current situation there is no framework, and there is no definition, as the matter is considered somewhat contradictory in some matters, and the committee must find a legal method for its work and fill the legal gaps in its establishment, and establish a political-financial framework for public spending, determined by the meaning of rationality in spending and the volume of spending. On development or other sectors, such as the percentage of spending on human development sectors such as health, education, social protection, and other sectors, and a general framework must be developed by which proposals can be measured by ministries and other sectors.
