The International Monetary Fund (IMF) has called on Saudi Arabia to keep public spending under control, even as a partial recovery of oil prices helps the economy emerge from recession, AFP reported Wednesday (May 23rd).
In a Tuesday statement, the IMF called on the kingdom to continue "bold structural changes”, urging it to "resist the temptation to re-expand government spending in line with higher oil prices".
Saudi Arabia has embarked on an ambitious reform drive, known as Vision 2030, as it seeks to reduce dependence on oil and diversify its income streams.
But figures released by the finance ministry last week show spending soared 18% to $53.5 billion in the first quarter of this year, outstripping a 15% increase in revenues.
This created a quarterly budget shortfall of $9.2 billion, up 31% on the first three months of 2017.
The IMF congratulated the kingdom for measures designed to boost non-oil revenues, however, saying it “is making good progress in implementing its ambitious reform programme”.
