22/02/2023

The Director-General of the International Monetary Fund, Kristalina Georgieva, expected a decline in growth in the Middle East and North Africa region from 5.4% in 2022 to 3.2% in the current year 2023, before rising to 3.5% in 2024.

She said during the Seventh Public Finance Forum in the Arab Countries held in Dubai that reducing production in oil-exporting countries, according to the OPEC agreement, may lead to a decline in total oil revenues, while challenges will continue in oil-importing countries.

Georgieva highlighted three principles that countries can guide in employing fiscal policies to build resilience, namely, "Building resilience through fiscal policies, long-term planning and investment to meet climate challenges and enhance tax revenues."

On enhancing tax revenues, she said that investing in a more solid future depends on continuing to strengthen tax policies and tax administration, noting that many countries in the region have made great progress in strengthening their tax capabilities.

- Jordan's role praised -However, she added, "However, the average tax-to-GDP ratio, excluding hydrocarbon-related revenues, is still approximately 11%, less than half of the possible proceeds." inefficient taxation. She added that "the 11% rate can be increased by improving the design of tax policies and the gradual abolition of inefficient tax exemptions."

She praised Jordan's role in modernizing tax administration, saying, "The main factor for increasing revenues is modernizing tax administration, and the use of digital tools can help in this regard. This is what Jordan has already done, and the Palestinian Ministry of Finance has taken similar measures.

She explained that such procedures are expected to contribute to increasing revenues by improving compliance, and the fund can help through capacity development programs in designing and implementing these procedures.