International Monetary Fund: Saudi budget recorded a deficit of 7%
13:56 - 16/05/2019
Information / Baghdad ..
The International Monetary Fund said on Thursday that rising public spending would push the Saudi budget deficit to 7 percent of GDP this year, well above government estimates.
The IMF said in a statement after a visit by its team of experts to Saudi Arabia that its estimates are based on the assumption that the average oil production of Saudi Arabia 10.2 million barrels per day and the average price of oil $ 65.5 per barrel in 2019, indicating that the budget deficit of 5.9 percent in 2018.
The Saudi government expects a budget deficit of 4.2 percent of GDP this year.
The VAT has been applied "very successfully," the IMF said, but the Saudi government should consider raising the tax rate of 5 percent, which is low compared to international standards, in consultation with other Gulf governments.
Reducing the government wage bill and focusing on systematically increasing capital expenditure and channeling social benefits more accurately to eligible groups would all result in savings in public finances. Ending / 25