Prof. Dr. Haider Hussain Al Tohma
Prof. Dr. Amer Omran Al-Mamouri
Over the past decades, it reflected fluctuations in crude oil prices, and frequently, the recession and boom cycles in the most oil-producing countries. Sharp fluctuations witnessed by the recent international oil markets. It has strengthened the role of fiscal policy in the absorption unit and smoothed the oil shocks and to achieve economic growth and stability in the oil-exporting countries.
In this context, the evaluation of the sustainability of public finances a central issue in the assessment of fiscal policy in countries that rely on oil revenues to finance the budget and economic development path. This paper discusses the privacy of fiscal sustainability in the oil countries across the curriculum permanent income hypothesis, which takes into account the total public wealth, including wealth-calculated reserves of natural resources.
Using modern econometrics models and the use of the Kingdom of Saudi Arabia as a model for the economy of oil has been monitoring the long-term equilibrium relationship between revenues and government expenditures, which indicate the existence of a joint integration between the variables, mentioned and check fiscal sustainability in the Kingdom of Saudi Arabia.