SAUDI ARABIA: Government delivers fiscal adjustment

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● Nominal steps Saudi Arabia took in recent years when it did not need to, such as imposing a Value Added Tax and offering bonds on Saudi public sector firms, will become core parts of government strategy going forward. ● The government is balancing between continuing capital expenditures to promote economic diversification and reallocating resources to focus on the weakened Saudi private sector. When Saudi Arabia and many of the other Gulf Cooperation Council (GCC) states imposed a VAT in 2018, it did not make much difference in the Kingdom’s finances. Five percent seemed tr
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