Government spending in oil-dependent GCC countries driven by revenue availability, study finds.
The article examines how government spending and revenue are related in oil-dependent GCC countries. By using a special modeling framework, the researchers found that government spending tends to follow changes in oil revenue. This means that when oil revenue goes up or down, government spending also changes accordingly. To make government spending less dependent on oil revenue fluctuations, authorities could plan expenditures in a more stable way over the medium term.