November 9, 2015 0
Said Christine Lagarde, director of the International Monetary Fund, said that most of the six Gulf Cooperation Council (GCC) oil exporters have developed a prudent fiscal policies and that could of did not do to learn from others.
This came in a statement after a meeting with top economic officials Gulf Arab states in Doha. And trimmed the decline in oil and gas prices since last year, government revenues from the export of energy resulting in significant levels in the budget deficit.
Lagarde said that all the Gulf countries need to further adjustments to their budgets to cope with the decline in oil prices over the long term, although most of them adopted fiscal policies will allow to carry out those changes from a position of strength and will limit its impact on economic growth rates.
"It is not impossible for us to do so certainly learn who they did." But did not mention any country by name.
She urged the Gulf states, including Saudi Arabia and the United Arab Emirates on the age of the value-added tax at the level of the region as soon as possible because it will generate significant revenue even at low rates. She said that it should not be delayed.
Lagarde said that governments need to curb spending growth.
"In light of the new financial realities there is no room for further growth in public wage bills. We have to face that fact. "
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