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FINANCIAL NEWS
GCC plans to cut spending
14 Jan 2015
(MENAFN) Gulf States, which pump a quarter of the world’s daily oil supply, may see record government spending programs curtailed this year’s budget, Gulf Daily News reported.
This is due to a decline of more than 50 percent in crude prices which may make it harder for countries to tackle critical issues such as youth unemployment and infrastructure investments.
The International Monetary Fund (IMF) has stated that if low oil prices persist and current policies continue unchanged, some Gulf oil exporting nations’ fiscal surpluses may turn into deficits as early as this year.
In 2013, Saudi Arabia’s budget break-even oil price grew to USD89 a barrel from USD78 a barrel in 2012, according to IMF.
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