IMF calls on Arabian Gulf states to speed up spending cuts | The National

IMF calls on Arabian Gulf states to speed up spending cuts | The National:

"The IMF expects Arabian Gulf countries to move faster on cutting spending rather than introducing taxes to help balance their budgets.

The fund projected a wider fiscal deficit of 13 per cent for the Gulf region in a report released last week because of the oil price slump, compared with 8 per cent forecast in its May report.

“Realistically, some spending cuts are likely to come before the tax starts paying off,” said Masood Ahmed, director of the IMF’s Middle East and Central Asia department. “In the conversations we have had, a number of them [Gulf countries] are looking at ways at which to consolidate. People are looking at investments. They are looking at efficiency savings in current expenditures.”"



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