Almost all Arab countr­ies have posted budget defici­ts over the past few yearsDUBAI, UAE: IMF chief Christine Lagarde on Saturday urged Arab countries to slash public wages and subsidies in order to rein in spending, achieve sustainable growth and create jobs. Speaking at the one-day Arab Fiscal Forum in Dubai, Lagarde welcomed “promising” reforms adopted by some Arab countries, but insisted much more was needed to overcome daunting economic and social problems. Yet Arab public spending remains very high, especially in oil-rich Gulf states, where government expenditures exceed 55 per cent of gross domestic product, Lagarde said. Public spending reforms should focus on cutting costly subsidies and public wage bills whilst boosting efficiency in areas like health, education and public investment, she said. “There is really no excuse for the continued use of energy subsidies,” Lagarde said.

Source: The Express Tribune February 10, 2018 10:30 UTC