Fiscal Policy In Saudi
Andreas Cantu In 2017, Saudi Arabia was in discussion over two new fiscal policies. 1. the first would look to decrease the overall government spending in an attempt to lower their fiscal deficit to 7.7% of GDP in 2017 from the 11.7% in 2016. 2. The second policy would go hand-in-hand with the first as they looked to better allocate the remaining government spending. However, government spending is one of the key drivers of all economic activity in Saudi Arabia, so the contraction of their spending in certain major sectors (oil) will require more advocation of the private sector in order for the economy to not completely fail after the decrease in spending. The decrease will also result in an increase in taxation and fees, as well as newer sources of capital as the private sector increases. The largest stakeholders and advocate for both these policies would be the country of Saudi Arabia itself. As the world slowly moves from oil and with oil accounting for...