Saudi Arabia seen opting for debt to fill fiscal gap | GulfNews.com

Saudi Arabia seen opting for debt to fill fiscal gap | GulfNews.com:



"Saudi Arabia is likely to bridge its widening fiscal gap by resorting to domestic borrowing in the near future, according to economists and the International Monetary Fund (IMF).



The country is expected to face a larger than estimated budget deficit this year due to the sharp decline in oil prices combined with rising government expenditure on account of increased welfare spending, government handouts to its employees and a jump in defence expenditure on account of the conflict in Yemen.



While Bank of America Merrill Lynch economists estimate Saudi budget deficit to exceed 17 per cent of GDP in 2015, the IMF puts the deficit figure at a slightly higher rate of 20 per cent of GDP."



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