IMF's Lagarde push Gulf nations to unveil tax, spending reforms

International Monetary Fund Managing Director Christine Lagarde urged Gulf Arab oil nations to implement tax and spending reforms to control budget deficits. Low oil prices have cut state revenues in the Gulf Cooperation Council. All of the countries have started to limit spending, but so far, most have inhibitions in taking measures to reduce consumers' disposable income. Lagarde pressed governments to slow growth of their current spending, referring to their practice of giving high-paying jobs to their citizens to secure political support. As of present, most GCC citizens work for the public sector. The IMF head also urged them, including Saudi Arabia and the United Arab Emirates, to unveil a regional value-added tax the soonest possible.

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