Testing Fiscal Sustainability under the Inter-Temporal Budget Constraint in Saudi Arabia

Haider Mahmood ()

MPRA Paper from University Library of Munich, Germany

Abstract: This paper tests the fiscal sustainability for Saudi Arabia under the inter-temporal budget constraint for the variables public revenues and expenditures as ratio of GDP for a period 1980-2014. Both variables are found stationary at their first differences. Cointegration result proves the cointegrating relationships but the slope of public expenditures on public revenue is found less than one. Therefore, this study concludes a weak fiscal sustainability in Saudi Arabia and suggests the fiscal reforms to maintain a strong sustainability.

Keywords: Fiscal sustainability; Cointegration; Public expenditures; Public revenues (search for similar items in EconPapers)
JEL-codes: H2 (search for similar items in EconPapers)
Date: 2016-05-10
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Citations: View citations in EconPapers (13)

Published in Actual Problems of Economics 11.185(2016): pp. 356-362

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Persistent link: https://EconPapers.repec.org/RePEc:pra:mprapa:109458

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