$794.2 billion in public revenues for Arab countries, up 15.6% | Gulf newspaper

• 24% increase in oil revenues to $402.6 billion
• 16.5% increase in tax revenues, to $292.6 billion
• Public spending amounted to $901.9 billion, an increase of $8.1 billion

The Arab Monetary Fund revealed that the total public revenues of the Arab countries collectively increased to $794.2 billion in 2021, an increase of 15.6% compared to about $687.3 billion in 2020, as a result of the increase in oil and tax revenues.

In the Unified Arab Economic Report, the Fund indicated that the total public revenues and grants for the Arab countries combined increased by about 15.5% to reach about $796.7 billion in 2021, which represents about 27.8% of the GDP.

The report pointed out that the increase in public revenues for the Arab countries comes as a result of an increase in oil revenues by 24% to reach $402.6 billion in 2021, and an increase in tax revenues by 16.5% to reach about $292.6 billion during the same year, as a reflection of the beginning of the economic recovery that it witnessed. A number of production and service activities, which led to an increase in the proceeds of indirect taxes such as taxes on goods, services and foreign trade.

The report stated that the contribution of oil revenues to total public revenues and grants increased to 50.5% in 2021, compared to about 47.1% in 2020, and the contribution of tax revenues increased from about 36.4% in 2020 to 36.7% in 2021.

According to the report, total public spending increased slightly by 0.9%, or the equivalent of $8.1 billion, to reach about $901.9 billion in 2021, which represents about 31.5% of GDP as a result of an increase in current spending by about 3.1%, compared to a decline in capital spending by about 3.1%. 10.7% in 2021.

The report pointed out that the public financial situation in the Arab countries witnessed an improvement during 2021, after its decline due to the repercussions of the “Covid-19” pandemic in 2020, as the recovery of economic activity led to an increase in tax revenues in light of the relative improvement in consumption and investment levels and the movement of foreign trade.

The report stated that the exit of a number of Arab countries, wholly or partially, from the fiscal stimulus policies they adopted in the framework of addressing the repercussions of the pandemic, led to an improvement in tax revenues and government fees, and the rise in global oil prices also contributed to an increase in oil revenues, which greatly supported the public financial conditions in countries. Arab oil exporters.

(wam)