Gulf nations forced to cut public spending amid oil prices drop
Date
11/12/2015 5:27:19 AM
(MENAFN- The Journal Of Turkish Weekly) The decline in global oil prices has significantly reduced incomes in oil-producing Persian Gulf countries. In a bid to provide relief to their budgets the countries now have to trim spending including cutting public payroll.
Government departments and state-backed companies across the region have long been a source for comfortable jobs with very decent pay.
In such countries as Saudi Arabia and Qatar the number of public employees has exceeded the amount of work to do resulting in bloated payrolls and offices filled with so-called "sofa men" an article in The Wall Street Journal read.
Recently the issue was addressed by the International Monetary Fund (IMF).
Taking into account grave budget deficit Gulf nations need to create jobs in private sector IMF head Christine Lagarde said last Sunday during a meeting with regional financial officials in Doha.
Earlier in an IMF report they warned that the budget deficit in Gulf oil-exporting nations would reach $1 trillion in five years.
Kuwait’s budget incomes have dropped by 60 percent due to the fall in oil prices Kuwait’s Emir Sabah Ahmad al-Sabah said on October 27. In his speech before the National Assembly the leader urged to take austerity measures.
Legal Disclaimer:
MENAFN provides the information “as is” without warranty of any kind. We do not accept any responsibility or liability for the accuracy, content, images, videos, licenses, completeness, legality, or reliability of the information contained in this article. If you have any complaints or copyright issues related to this article, kindly contact the provider above.