IMF expects Saudi budget deficit to hit 7% of GDP this year

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IMF expects Saudi budget deficit to hit 7% of GDP this year
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Higher public spending will push Saudi Arabia's budget deficit to 7% of gro...

DUBAI - Higher public spending will push Saudi Arabia’s budget deficit to 7% of gross domestic product this year, the International Monetary Fund said on Wednesday.

The IMF said the introduction of a value-added tax has been very successful, but the Saudi government should consider raising the rate from 5%, which is low by global standards, in consultation with other Gulf governments. “Higher government spending has supported growth and the implementation of reforms, but has increased medium-term fiscal vulnerabilities,” the IMF said.

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