Finance minister Ibrahim Alassaf made the statements following a meeting with the IMF on Saturday (October 6th), during which he was warned that falling energy prices and the large budget surpluses
since 2009 would damage Saudi Arabia's fiscal position.
The world's top oil exporter has run large budget surpluses
since 2009 but the IMF said in a report last month that falling energy prices would hurt the kingdom's fiscal position.
Financial management reforms introduced over the past years have seen budget surpluses
fall dramatically by 90% since 2001.
drove this figure down in the late 1990s; falling interest rates continued to cut the cost despite the budget deficits that returned in April 2002.
In fact, during Clinton's second term (1997-2001) the federal government actually claimed budget surpluses
, even though the national debt continued to rise each year during that entire period.
It is these observations that appear to be causing economists to raise their forecasts of the economy's long-term growth rates and budget surpluses
RUNNING federal budget surpluses
when the economy is operating at full employment is not fiscally responsible.
Current projections are that federal budget surpluses
may be nearly $2 trillion over the next ten years, that's a sharp increase from earlier estimates of around $750 billion.
The fattest, juiciest bait in the President's budget is his proposal to commit 62 percent of budget surpluses
over the next 15 years to Social Security and pay down the public debt in the process.
One correspondent, Dean Dowling, asked what happened to budget surpluses
The prospect of budget surpluses
has whetted the appetites of Democrats and Republicans alike.
Under the Ricardian equivalence hypothesis, the timing of budget surpluses
and deficits--and therefore the perceived fiscal policy rule--is unimportant, and the Lucas critique does not apply.